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I’ve done business valuations for acquisitions before, but not for STR property management.  Any advice or recommended resources?

  • Key metrics to dig into?
  • P&L - EBITDA or something else?
    • Typical multiple?

  Happy to take convo offline, if that’s better.  Thanks in advance.

Hi Doug,

 

I’ve acquired a few Airbnb Arbitrage listings.  and typically look at the following:  

 

  • AirDNA deep dive review to assess market trends, potential revenue, peak/trough seasons, approximate occupancy, etc
  • If they’ve previously used the listing as a short term rental, ask for their P&L:
    • Request exports from Airbnb, VRBO and/or Booking.com, or other STR’s 
    • Occupancy rates
    • Monthly Expenses (Supplies, housekeeping, maintenance)
    • Monthly utilities 
    • Monthly Rent
    • Net profit per month
  • If the property has been an STR before, look at the reviews in detail
    • Any recurring maintenance issues
    • Feedback on the location
    • Feedback on the property itself

I typically look to get my ROI in 12-18 months, based on the metrics above.

 

Hope this helps!

 

Scott 

Thanks, Scott!  Very helpful. Looking at acquiring STR management companies, I can start with this method, but then need to add more for IP Goodwill and other assets.

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