Bizdaq Blog

Fawlty Towers

If you wanted to do Basil a favour and buy Fawlty Towers, how much would it cost you?

If Basil ever decides to pack in the hotel he so obviously loathes, how much money could he get for it?

Fawlty Towers Cast

BBC

Basil was never famed for his exemplary customer service; however the hotel was in a prime location and had plenty of room for guests, so how much would it be worth?

We watched the iconic sitcom to get an idea of how many guests stayed, how many rooms it had and, of course, how the hotel managed to continue to operate despite Basil’s unabashed disdain for any and all guests.

Property Value of Fawlty Towers

Fawlty Towers External

BBC

One important factor when valuing businesses is whether the property is owned by the seller, or if they lease it. For this example we assumed Basil would own the property himself, rather than paying a rent on it. A building of a similar size in Torquay costs around £450,000, so we’ll assign Fawlty Towers the same value.

Fawlty Towers Property Value

£450,000

$684,000

Fawlty Towers Annual Turnover

Basil and Manuel

BBC

Another important factor, turnover is imperative in valuing a business. To get to this, we noticed the Towers have a total of 22 rooms available for rent (though 26 in total). If we assume £50 a night, multiplied by 365 nights, at an occupancy rate of 0.7 (it was never really full – who’d want to be berated by Basil?) that brings us to £281,050 a year.

What about the restaurant and bar? Maybe not necessary....

Fawlty Towers Annual Turnover

£281,050

$427,196

Fawlty Towers Asset Value

Fawlty Towers Table

BBC

The assets of the business are anything that can be assigned monetary value – beds, cooking equipment, curtains etc. With 22 rooms and a (slightly fire-damaged and rat-infested) kitchen, we think this is around the £25,000 mark. Adding all these factors together, we come to the estimate.

Fawlty Towers Asset Value

£25,000

$38,000

Fawlty Towers Valuation

Happy Basil Fawlty

BBC

A good sum of money, Fawlty Towers would be worth just over a quarter of a million pounds in today’s market – more than enough for Basil and Sybil to retire and live on.

We Value Fawlty Towers At

£756,050

$1,149,846

What would you do – sell up and live a life free from guests and Manuel, or continue to run the terrible Torquay hotel?