EBITDA Multiple for Properties
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
An EBITDA multiple values an income-producing property that is really an operating business, such as a hotel, marina, car wash, or self-storage facility, by multiplying its earnings before interest, taxes, depreciation, and amortization by a market multiple.
Some buildings don't collect rent; they run a business. A hotel sells rooms every night. A car wash sells washes. When the income depends on operations instead of leases, buyers price the business's earnings, EBITDA, and put a multiple on it. The multiple is really a cap rate turned upside down, and knowing that one fact will save you from a bad deal.
EBITDA Multiple vs. Cap Rate
A multiple of 8x EBITDA is roughly a 12.5% cap rate (1 ÷ 8). The math connects the two, but the risk is different: EBITDA carries operating risk, meaning staffing, seasonality and management, that a leased building's NOI doesn't. That's why operating properties usually trade at higher implied cap rates than leased ones. For hotels, EBITDA comes out of RevPAR and ADR, minus operating costs and a reserve.
A Hypothetical Daytona Example
A 120-room beachside hotel near Daytona Beach produces $1,200,000 of EBITDA after a replacement reserve. Comparable hotel sales in the example trade around 8x, which puts the value near $9,600,000, an implied 12.5% cap rate. If a buyer tried to price it like a leased building at a 7% cap, they'd overpay by millions for the privilege of running a front desk. Hypothetical figures only.
Where the Multiple Moves
Multiples rise with brand strength, location and clean books, and fall with deferred capital needs, a soft season and insurance costs. In Florida, hurricane insurance alone can move EBITDA, and with it value, by a meaningful amount. See our Florida hotel investment guide for how we underwrite operating assets.
From the Desk
When a seller quotes me a cap rate on a hotel, I ask to see the EBITDA. When they quote me EBITDA, I ask to see the reserve. The number that matters is what's left after the business pays to keep itself running.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your EBITDA Multiple for Properties Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Convert a multiple to a cap rate
Plug the EBITDA in as NOI and compare the implied cap rate with leased-property comps.
Frequently Asked Questions
What is an EBITDA multiple in real estate?
A valuation method for property-based operating businesses: EBITDA multiplied by a market multiple estimates value.
Which properties use EBITDA multiples?
Hotels, marinas, car washes, self-storage and other assets whose income comes from operations rather than leases.
How does an EBITDA multiple relate to a cap rate?
Roughly, 1 divided by the multiple gives an implied cap rate; for example, 8x is about 12.5%.
Why do operating properties trade at higher implied cap rates?
Because their income carries business risk such as staffing, seasonality and management, not just tenant credit.
Should EBITDA include a reserve for replacements?
Yes. Deducting a reserve for furniture, fixtures and major systems keeps the value honest.
Article Summary
Operating properties like hotels and marinas are often valued on an EBITDA multiple. The multiple is an inverted cap rate, and it's higher-risk because it prices business operations, not just leases.
Key Takeaways
- ✓Operating properties price on EBITDA × multiple.
- ✓1 ÷ multiple ≈ implied cap rate.
- ✓Operating risk means higher implied cap rates.
- ✓Always deduct a replacement reserve.
- ✓Florida insurance can move EBITDA materially.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
Ready to Talk About Your EBITDA Multiple for Properties Deal?
Get a free consultation with Michael R. Linton — 39 years of CRE experience. Zero pressure.
Schedule a Free ConsultationWorks Cited
- STR. "Hotel Industry Performance Data and Definitions." STR / CoStar, https://str.com/. Accessed Sep 28, 2026.
- Appraisal Institute. "The Appraisal of Real Estate, 15th Edition." Appraisal Institute, https://www.appraisalinstitute.org/. Accessed Sep 28, 2026.
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Sep 28, 2026.
- Florida Legislature. "Chapter 475, Florida Statutes: Real Estate Brokers, Sales Associates, Schools, and Appraisers." Online Sunshine, http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0475/0475.html. Accessed Sep 28, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.