Valuation · October 9, 2026
Hospitality multiples: the number is only the beginning
A New York and New Jersey buyer's view of transferable cash flow, operating risk and real estate value.
Begin with the right earnings base
For an owner-operated restaurant or catering business, seller's discretionary earnings and EBITDA answer different questions. A buyer who must replace the owner needs a realistic management-cost allowance. Normalize documented one-time items, related-party rent and compensation; do not assume every seller adjustment will survive diligence.
The same revenue can produce very different value
Lease duration, assignment rights, license approvals, management depth, labor requirements and repeatable demand affect what a buyer can finance and maintain. Venues add event deposits, future bookings and cancellation liabilities. Hotels add occupancy, room-rate mix and recurring capital expenditure. Evaluate the business model rather than applying a single hospitality multiple.
Business and building are not interchangeable
Where real estate is included, review property NOI separately and account for sustainable market rent in the operating business. Avoid counting the same earnings in both a business multiple and a property valuation. Have tax and legal advisors review any allocation between assets, goodwill and property.
Read national research as context, not a local comp
Hotel investment research from JLL and HVS can frame capital flows and operating trends. It does not establish a restaurant multiple in Bergen County or a hotel valuation in Manhattan. A defensible range requires current comparable evidence, financial diligence and asset-specific assumptions.
Sources & further reading
The Luberto Group editorial perspective · Published October 9, 2026. Sources provide regulatory or research context, not endorsement of this analysis. No numeric NY/NJ market benchmark is asserted here. Requirements and market conditions can change; confirm current information with qualified advisors.