Hotels and resorts are usually sold in their operational state.
Among the things that fall under this category are new bookings, equipment rentals, and employment agreements.
This is not the case in a typical real estate sale; in those, the property is transferred without these complications.
Hotel employees and patrons often feel apprehensive when they learn that the hotel is being sold, especially when they hear the news from a source other than the seller. However, in this article, we will help you get all of your answers and your needed closure. Keep on reading and understand the basics.
How to sell your inn in a difficult market: top 11 key facts to know
1. Look at the value of your accommodation business
Analyzing nearby accommodation establishments of similar size and features might help you determine your business’s worth.
However, hiring a broker that specializes in the hospitality industry early on will allow you to identify strategic improvements that will raise your asking price.
2. Who will represent your sale
You’ll need to bring in the following specialists to help you sell your hotel: an accountant, a business broker, or an attorney.
If you’re trying to sell your hotel, it’s much less stressful to work with a business broker.
A broker can facilitate a smoother and more expedited deal by putting you in touch with the right people and providing you with timely advice.
3. You can advertise it for sale
Promoting your hotel in the right places and to the right people can make all the difference in the world when trying to sell it.
In today’s digital world, you can promote your business in a variety of ways, some of which will require no money at all, while others will require more traditional offline methods.
If you’re interested in selling your hotel, here are several places to start:
- Online pages
- Travel magazines
- Publications pertaining to the real estate industry
- Digital network that connects people around the world
- Money-related newsletters
- Magazines devoted to business topics
- Magazines devoted to vacationing
- Real estate portals
4. What to know about competitive benchmarking
One of the first items on your research checklist should be a comprehensive evaluation of the local hotel industry as of late.
Your hotel’s local competition and similar establishments in the area will be studied.
What you’re doing is more than just good for your pride.
While you may be expecting to find evidence that your home is among the best in the area, there is always the possibility that you will find defects or discrepancies that need to be addressed instead.
While both are positive developments, the potential upside from addressing the property’s development opportunities means that the hotel might be valued even more than it is now.
5. Have an exit plan
Establishing an “Exit Plan” early on will help to speed up the selling process, as well as reduce the likelihood of delays and attempted offer reductions.
Get in touch with a seasoned hotel broker or agent as soon as possible for their expert opinion; they may have some excellent ideas for preparing your property for sale. You will not waste any minutes of your precious time this way.
6. Have a business presentation
Prepare a comprehensive advertising plan that you and your agent can get behind and can successfully follow through.
In addition to increasing the likelihood of a smooth sale, a well-organized and deliberate strategy can also impress potential purchasers with your professionalism.
7. A good first impression is a must
Put your best foot forward in every aspect of your business, from trading data and documentation to planning and aesthetics.
Dressing up your business and property for potential buyers will help you receive the highest possible sale price.
Clear and complete information displays are helpful since purchasers will have fewer questions and concerns if they can rely on them.
It will also protect you from hold-ups and attempts to lower your offer price.
8. Have an agent + embrace flexibility
Your hotel will make a better impression on potential guests if your agent takes the time to create professional sales materials and a polished presentation to show the market.
Potential buyers need to be enticed to come to see the property by providing them with as much detail and enticing imagery as possible.
Using professional-grade photos can have a major impact on how well a marketing campaign does.
Inquire about the representative’s background and the products they’ve sold in the past that are comparable to your company in terms of market and pricing.
Don’t believe a broker’s empty promises without checking their references.
For the best results, you need a specialist working for you.
9. Know how to adapt
In the present climate, adaptability is key when establishing an agreement. A stronger possibility of sealing the deal lies in your hands if you are open to considering alternatives to outright freehold acquisition, such as lease purchases, delayed payments, and/or vendor loans.
Keep in mind that your representative should fully explain these options to you and that not all offers involve concerns of this sort.
Your company must also do exhaustive checks into the history of the potential buyers.
Regardless of the nature of the agreement, this holds true.
10. Safe & Functional
Keep your hotel’s sales as your primary priority during the marketing phase to ensure competitive bids.
For instance, purchasers may exploit a drop in trade to justify a lower offer price by arguing that the asset’s worth has been negatively affected.
In the same way that neglecting the property’s upkeep would be seen by buyers and used against you when negotiating prices, parties making bids may also take into account the condition of the property.
10. Listen to good advice
Pay close attention to the advice of a reputable agency or company that specializes in the sale of hotels.
Make sure your accountant and lawyer are familiar with going-concern sales as well.
Perhaps a more stress-free and successful closing could be achieved with the help of an experienced consulting team. Our advice? Visit this site if you’re all about selling an inn. You will get a fair quote along with great listing options + no commission fees.