🏨 Motel Valuation Tool 2026

🏢 Property Type — Expense Benchmark Auto-Fill

Select Chain Scale / Property Category

ⓘ California hospitality market benchmarks (Gemini / industry data). Selecting a type switches to Advanced expense mode and fills industry-average percentages. Adjust any value afterwards.

📋 Property Basics

Number of Rooms

Average Daily Rate (ADR)

Occupancy Rate

% 65%

TOT — Transient Occupancy Tax (pass-through)

% 12%

🏦 Market & Financing Inputs

SBA / Loan Interest Rate

% 7.25%

10-Year Treasury Yield

Underwriting Parameters

Motel Risk Premium

FF&E Reserve (Furniture, Fixtures & Equipment)

DSCR Requirement

LTV (SBA)

Amortization (Years)

📊 Expense Configuration

Simple (Single OER) Advanced (Fine-tune)

Percentage of Revenue Fixed Dollar Amount

Operating Expense Ratio (OER)

OER = 60% · Standard underwriting benchmark

Gross Revenue

—

RevPAR: —

GOP

—

— % margin

NOI

—

— % margin

Net Income

—

CoC: —

🛡 Operational Risk — Skeleton Floor Requirements

Enter property data to see operational floor analysis…

📈 Income Statement

🏷 Valuation Analysis

Method A — Income Capitalization

—

NOI ÷ Cap Rate

Method B — Debt Service Coverage

—

Max bankable price at 1.33x DSCR

Run calculation to see cap rate derivation…

Price Method:

🏷

Selected Purchase Price

—

Governing method

—

⚠️ Bank Reality: Method B Exceeds Appraisal Ceiling

Cap Rate

—

Market yield

DSCR

—

Coverage ratio

Cash-on-Cash

—

Return on equity

GRM

—

Price / Gross Rev

NOI / Room

—

Per room annual

Equity Down

—

Required cash

Financing Structure

Loan Amount—

Equity Down Payment—

Monthly P&I Payment—

Annual Debt Service—

Debt Yield (NOI ÷ Loan)—

Amortization—

Interest Rate—

🎯 Purchase Price — Debt Service What-If

Drag to explore how offer price affects monthly payments, DSCR, and cash-on-cash return in real time.

Offer / Purchase Price = Optimal calculated price

$ —

Monthly P&I

—

payment / month

Annual D.S.

—

debt service / yr

DSCR

—

coverage ratio

Cash-on-Cash

—

return on equity

Loan (80% LTV): — Equity Down: — Net Income: —

🏦 Bank Underwriting — Reality Check

Debt Yield (NOI ÷ Loan Amount)

Hospitality benchmark: 10% minimum · 12% target —

0%↑ 10% min↑ 12% target26%

T-12 Downside Scenario — Seller's Actual History

Banks lend on T-12 actuals, not your pro-forma. Enter the seller's trailing 12-month ADR and occupancy to see how the lender will size the loan.

T-12 ADR (Seller Actual)

T-12 Occupancy (Seller Actual)

T-12 Revenue

—

T-12 NOI

—

T-12 Debt Yield

—

Bank Max Loan

—

Bank-Implied Value

—

vs. Your Offer

—

🛠 PIP Contingency (Branded Property Renovation Escrow)

For franchised properties, the brand mandates a Change-of-Ownership PIP inspection. Banks require any identified renovation cost to be escrowed at closing — effectively increasing your day-one cash requirement.

Estimated PIP Cost (renovation escrow)

Motel Valuation & Underwriting Tool

📄 Letter of Intent — Purchase Offer