3-Star Hotel Valuation in Capri
Valuing a 3-star hotel in Capri calls for a specialist methodology that combines sector EBITDA multiples, local RevPAR analysis, the underlying property value and positioning modifiers. KW Hospitality applies a structured framework tested across dozens of transactions in the Italian market. For the Capri market: an iconic luxury destination, 5★ ADRs among the highest in the Mediterranean, asset scarcity on limited land, concentrated seasonality, active luxury brands.
The 3-star hotel market in Capri in 2026
The Capri hotel market in the 3-star category counts approximately 28 recorded properties. Typical seasonality: high season concentrated in April-October, with many properties closing from November to March.
Factors specific to the Capri market
- ›Iconic global luxury destination
- ›5★ ADR among the highest in the Mediterranean (€900-3000+)
- ›Asset scarcity (limited land), maximum valuation premium
- ›Concentrated seasonality (200 typical operating days)
- ›Global HNWI demand, luxury brands active (J.K. Place, Capri Tiberio Palace)
Typical features of a 3-star hotel
3-star hotels represent the largest segment of the Italian hotel market: a balanced business-leisure offering, a broad target base (tourism, mid-market business, tour operators) and lean operations, with EBITDA margins averaging 22-32%.
Typical facilities
- • breakfast restaurant
- • bar
- • wifi
- • 24h reception
- • some meeting rooms
Typical buyer profile
- • independent operators
- • small investors
- • local operators
- • mid-market funds
What is a 3-star hotel in Capri worth?
EBITDA multiples for 3-star hotels in Capri in 2026 range between 7× and 10×, with a premium for prime historic-centre locations (+30% modifier). For a typical property of 50 rooms with a RevPAR of € 180 and 70% occupancy, the valuation range is € 8.1M - € 11.5M.
| Metric | Benchmark value |
|---|---|
| EBITDA multiples (3-star category) | 7× – 10× |
| Typical EBITDA margin | 22% – 32% |
| Prime location Capri | +30% |
| Average RevPAR Capri (3-star) | € 180 |
| Average occupancy | 70% |
| Typical room count | 25 – 80 rooms |
ⓘ The ranges shown are indicative and based on public market parameters. A professional valuation also considers: the condition of the property, staff contracts, the exact location, brand affiliation, licences, any litigation, and accessibility.
Data sources: ISTAT (tourist arrivals and overnight-stay statistics), Banca d'Italia (international tourism), industry benchmarks (CBRE, Cushman & Wakefield, JLL Hotels & Hospitality, STR Italia). Updated: Q1 2026.
Frequently asked questions
What is a 3-star hotel in Capri worth?
The value of a 3-star hotel in Capri is estimated on the income it generates, not on floor area alone. The EBITDA method multiplies gross operating profit by a market multiple (typically 6-12× in Italy), adjusted for category, location and building.
How is a hotel valued using the EBITDA method?
You start from revenue (rooms × RevPAR × 365), estimate EBITDA by applying the operating margin, and multiply by the market multiple. The result is a value range, refined through real estate and positioning analysis.
What is RevPAR and why does it matter in a valuation?
RevPAR (revenue per available room) is ADR × occupancy. It is one of the main value drivers: a higher RevPAR in Capri means greater earning capacity and therefore a higher market value.
Which factors increase the value of a 3-star hotel in Capri?
Location and tourist flows in Capri, brand affiliation, quality of F&B and wellness, condition of the building, cost efficiency and management contracts. Optimising these elements before a sale increases the applicable multiple.
Does KW Hospitality provide a preliminary estimate of my hotel's value?
Yes. We provide a preliminary estimate of the value of your 3-star hotel in Capri, with the market range and the levers to raise it. It is the ideal starting point before considering a sale.
Request a preliminary valuation
KW Hospitality brokers 3-star hotels in Capri through a confidential methodology, the global Keller Williams buyer network and a structured process running 6-12 months.
Request a preliminary valuation → Explore our valuation methodology