BC Hotel & Motel Appraisals

A small independent motel typically starts around $3,000–$4,500 + GST. Larger branded properties or complex assignments are priced higher. A written quote is provided within 24 hours of initial contact at no obligation.

A going-concern appraisal captures the value of the entire operating business — land, building, furniture, fixtures and equipment, and the intangible value of the established operation. This is the correct basis for hotels and motels in virtually all financing, sale, and legal contexts.

AACI (Accredited Appraiser Canadian Institute) is the highest professional appraisal designation in Canada, granted by the Appraisal Institute of Canada. Banks, courts, and government lenders require AACI-certified reports for commercial and special-use properties like hotels and motels.

Most appraisals are completed in 2–3 weeks from engagement, including the site visit. Expedited turnaround is sometimes available — discuss at the time of inquiry.

Yes. AACI-certified reports meet the standards required by Canadian chartered banks, credit unions, and government lenders including BDC. Lender-specific forms and instructions can be accommodated with advance notice.

The income approach is the primary method for most hotel and motel appraisals. This involves analysing the property’s stabilized net operating income (NOI) and applying a market-derived capitalization rate to arrive at a value opinion. The sales comparison approach — using comparable hotel and motel sales data — is used to cross-check and support the income conclusion. The cost approach is applied where relevant, typically for newer properties or insurance purposes.

A capitalization rate (cap rate) is the rate of return applied to a property’s net operating income to determine its market value. For example, a hotel generating $200,000 in stabilized NOI valued at a 7% cap rate would indicate a market value of approximately $2,857,000. Cap rates vary by property type, location, condition, and current market conditions — and are derived from actual comparable hotel and motel sales, not residential or general commercial data.

RevPAR stands for Revenue Per Available Room — a standard hospitality industry metric calculated by multiplying a property’s average daily rate (ADR) by its occupancy rate. It is one of the most important indicators of a hotel or motel’s revenue-generating performance. In an income approach appraisal, RevPAR trends directly influence the stabilized income estimate, which in turn drives the value conclusion. An appraiser without access to BC hospitality RevPAR benchmarks cannot produce a reliable value opinion.

ADR stands for Average Daily Rate — the average revenue earned per occupied room per night. Along with occupancy rate, ADR is used to calculate RevPAR and forms the foundation of the income analysis in a hotel appraisal. Bryce benchmarks each property’s ADR against comparable properties in the same market and region to assess whether the income being generated is at, above, or below stabilized levels.

Stabilized income refers to the income a hotel or motel would generate under typical, sustainable operating conditions — not necessarily what it earned last year. If a property is newly opened, recently renovated, or temporarily underperforming, the appraiser adjusts the income to reflect what a reasonably efficient operator would achieve over time. This stabilized figure is what gets capitalized into a value opinion, which is why it requires both industry expertise and local market knowledge.

es. The sales comparison approach draws on a database of actual hotel, motel, and inn sale transactions from BC and across Canada. Bryce maintains one of the most comprehensive private hospitality transaction databases available to a BC appraiser. Comparable sales are analysed on a per-room basis and adjusted for differences in age, condition, location, flag, and revenue performance. This data is not publicly available — it is accumulated over years of working exclusively in the hospitality sector.