Value Per Bed
Assess a care home on capital value per bed against trading performance.
Introduction
Who this is for: Investors and operators appraising care home acquisitions.
Why it matters: Value per bed is the sector comparable, but it varies enormously with room quality. A home with a high proportion of shared rooms or rooms without en-suite wet rooms will struggle to attract private-pay residents and commands a materially lower figure.
Typical scenario: A 62-bed home offered at £5.6m, with 80% en-suite and a 45% private-pay mix.
- Comparing value per bed without adjusting for en-suite provision and private-pay mix.
- Ignoring capex needed to bring rooms up to a lettable standard.
- Using registered beds rather than beds actually usable.
Inputs
Asset
beds
Trading
Analysis
£5,600,000 across 62 beds is £90,323 per bed, rising to £95,968 including required capex. Revenue of £3,098,909 at a 24% margin gives £743,738 EBITDA — a 12.5% yield on total investment, or 8.0x earnings.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Live Results
Value Per Bed
£90,323
Value Per Bed (incl. capex)
£95,968
EBITDA
£743,738
EBITDA Yield
12.50%