Tips & FAQs for Selling a Hotel

Published:
January 15, 2025
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Selling a hotel can be a complex process, but with the right insight and readiness, you can guarantee a smooth transaction. If you’re considering selling your property, here are some essential tips and frequently asked questions (FAQs) to guide you through the routine.

How long will it take to sell a hotel?

The timeline for dealing in a hotel property  can vary widely contingent upon several factors. These include the costs of the hotel, its age, the condition and features of the building, the remaining franchise term, and the price per unit compared to similar brands or new constructions. While it’s difficult to predict an exact timeline, understanding these elements will help you set realistic expectations.

How long does it take to close the sale once my hotel is under contract?

Once your hotel is under contract, mid-tier, limited-service, franchised properties. However, the closing process can be influenced by some facets, encompassing negotiations, financing, and due diligence, which can either shorten or extend the closing period.

What will it cost to sell my hotel?

The cost to sell your hotel is based on a percentage of the sale price, and this fee is only due upon the successful closing of the transaction. We are committed to helping you find the right buyer for your hotel, and no fees will be charged unless the sale is successfully completed.

What can I do to ensure the highest possible offer?

To secure the best possible offer, it’s crucial to maintain accurate financial records, especially for the past three years. Guarantee that your hotel’s income is fully documented and compliant with IRS standards. If your property is a franchise, verify that any required Property Improvement Plans (PIP) or inspections are completed or nearly completed. Additionally, separate capital improvement costs from regular maintenance on your Profit & Loss (P&L) statement and provide a clear list of improvements and their costs. Finally, make sure to disclose any costs that a client will not need to cover after payment for the property.

How should I price my hotel?

Setting the right price for your hotel is essential to attract serious buyers. For economy and mid-range properties, listings that align with multiple times the room revenue are more likely to gain attention. Corporate and institutional investors typically prioritize the Capitalization (CAP) rate, considering it a key factor in their decision-making. Our role is to facilitate the connection between you and possible financiers.

Dealing in a hotel property demands careful planning and attention to detail. If you have more questions or need guidance on your specific situation. We’re here to help make the routine as easy as possible.

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