Fishing lodges are valued with three approaches: the income approach (what the lodge earns, adjusted for risk), the market approach (what similar lodges sold for), and the asset approach (what the land, buildings and equipment are worth on their own). For a profitable lodge, the income approach usually sets the price. For a lodge with thin profits, the asset approach sets the floor. Comparable sales test both. This page is part of our guide How Much Is My Fishing Lodge Worth?
At a glance
| Approach | What it measures | Best for | Main weakness for lodges |
|---|---|---|---|
| Income | Earnings a buyer can expect, adjusted for risk | Profitable lodges with three years of clean records | Only as good as the earnings records |
| Market | Prices of comparable lodges that sold | Checking whether an income-based value is realistic | Few lodge sales, and most details are private |
| Asset | Value of land, buildings, equipment and rights | Low-profit lodges, and setting a floor | Ignores what the business earns |
How does the income approach work?
The income approach values the lodge by what it is expected to earn for a new owner. It starts with normalized earnings: seller’s discretionary earnings (SDE) for an owner-operated lodge, or EBITDA for a managed one. See how to calculate your lodge’s real earnings.
The valuator then turns those earnings into a value in one of two ways.
Capitalization of earnings. One year of sustainable earnings is divided by a capitalization rate that reflects risk.
Value = sustainable annual earnings ÷ capitalization rate
A multiple is the same idea stated the other way: a capitalization rate of 25% equals a multiple of 4. The higher the risk, the higher the rate and the lower the multiple.
Discounted cash flow. Earnings are projected for several years and each year is discounted back to today. This suits lodges with a clear growth plan or a big change ahead, such as new cabins or a new outpost. It depends heavily on assumptions, so buyers tend to discount it.
What sets the multiple or capitalization rate?
Risk. A buyer pays more for each dollar of earnings when:
- Earnings are steady or rising over three years
- Guests return year after year and come from several booking sources
- Land is owned, or Crown tenure is long and secure
- Licences and allocations will transfer with little doubt
- The lodge runs on systems and staff, not only on the owner
- Buildings and equipment do not need major spending soon
The reverse of each point lowers the multiple. Our page on what raises and lowers a lodge’s sale price covers each factor.
Free report: Prepare Your Lodge for Sale. Twelve steps that raise what each dollar of earnings is worth to a buyer. Use the form at the end of this page.
How does the market approach work?
The market approach compares your lodge with similar lodges that sold, adjusting for differences in size, access, tenure, season and earnings. It is the approach most owners expect, because it is how houses are priced.
For lodges it has limits. Few lodges sell each year in any one region, no two are alike, and the details that matter most (earnings, what was included, vendor financing) are rarely public. Brokers and valuators who work in the sector keep their own records of past sales, which is one reason to ask a broker which lodges they have sold. Use the market approach to test whether an income-based value is realistic, not to set it alone.
How does the asset approach work?
The asset approach adds up what the lodge’s assets would be worth on their own:
- Owned land and waterfront, valued by a real estate appraiser
- Buildings, docks and improvements
- Boats, motors, vehicles, aircraft and equipment at current market value
- Inventory
- Rights with a market value, such as transferable allocations, where they can be valued
The total is the value of the lodge as a collection of parts. If the income approach gives a lower number, the business is not earning enough to justify its assets, and the price will usually land near the asset value. If the income approach gives a higher number, the difference is goodwill: the value of the business as a going concern.
How do lenders value a lodge?
A buyer’s lender usually orders its own real estate appraisal. Real estate appraisers use the same three ideas under different names: direct comparison, the cost approach and the income approach. The lender then checks whether the lodge’s earnings cover loan payments with a margin. A gap between your asking price and the lender’s figures must be covered by the buyer’s cash, by vendor financing or by a lower price. See taxes and deal structure for vendor financing.
How do the approaches come together?
A valuator does not average the three results. They weigh each one by how reliable it is for your lodge, then explain the conclusion. For a profitable drive-to lodge on owned land with clean records, the income approach carries most of the weight. For a fly-in operation with thin profits on Crown permits, the asset and income approaches may both be low, and the transferability of permits becomes the deciding question. The result is a range, not a single number.
Which method should I use for my own estimate?
Use all three, roughly:
- Calculate your SDE for three years.
- Estimate your real estate and equipment value from recent appraisals, insurance values or quotes.
- Ask what comparable lodges have sold for, recognizing the limits.
- Compare. Where the numbers disagree, find out why.
Then have a professional test it. See how to get a fishing lodge appraised.
Frequently asked questions
Which approach do buyers trust most? The income approach, backed by verified records, because it shows whether the lodge can pay for itself.
Is goodwill real value? Yes, when earnings exceed what the assets alone would justify, and when those earnings will continue under a new owner.
Why did my insurance value come in higher than a buyer’s offer? Insurance values reflect the cost to rebuild, not what a buyer will pay for the business.
Can I use a home appraisal for my lodge? No. A lodge needs an appraiser with commercial or hospitality experience.
Get the free report: Prepare Your Lodge for Sale
Twelve steps to take before you list, including how to measure your revenue and occupancy the way buyers and lenders will. Fill in the form and get instant access to the report.
General information only; not a valuation or financial advice. As of October 2026