Hospitality, Food & Beverage Businesses
10,372 businesses were sold in this category in 2015. Of those transactions, the average multiple was 2.68X, with an average sale price of $250,197. The median (middle) sale price was $155,000 and the mode (most common) sale price was $98,600. Across the entire category, there were $205,990,517 in sales in 2015.
This category had relatively little variation among the average multiples between each type of business. Bars and pubs had the highest multiples, at an average of 5.63X, with hotels, motels and bed & breakfasts coming in second at 3.42, which made them outliers in this category, as the remaining business types had a range of multiples between 1.8 and 2.9.
The hospitality, food and beverage industry has a total average multiple of 3X for the past 5 years. These businesses are typically quite demanding, requiring a lot of capital to get off the ground, with high running costs and requiring a lot of labor and attention. They can also see a downturn if the economy takes a hit, as people will often cut down on eating out, taking trips and so on.
Here are the data sets for each of the businesses in the hospitality, food and beverage category from 2015: