Inn valuation

[Silverspoon]

In Charlottesville VA the recent bnb sales are all in the 8 to 10 times revenue range.
But with a million visitors a year to the area, a University, five US President's homes and 42 wineries within 20 minutes of town everything is at a premium. Our real estate taxes on a 7 room bnb that is not fancy by any means, $61,164, up 28% from last year. Holy MMOG, and the city is raising sales tax to 12.3% on lodging and 10.3% on food..

GULP!! OMG How can you make any profit at that rate?
edited: I didn't realize this is an older thread. But still.

 

[Jcam]

Is it typically 5X the revenue for the previous year or an average of several years? Are all furnishings and vehicles included in that price? We're not interested in selling but it's good information to know..

where I am its turnover per x 3 is what you can be lent which is nothing like what you need to buy -
value is very subjective here as big bb's are valuable here for their development potential (1) as flats or (2) professional houses of multiple occupancy (bedsits or a kind of set up where 4 rooms share a bathroom and kitchen set up)