Getting High Offers
What Can I Do to Ensure the Highest Possible Offer When I Sell a Hotel?
When you hire Southeast International Hotel Brokers to sell a hotel, we will thoroughly evaluate your business. This includes everything from assessing the physical condition of the property to combing through financial records to determine past performance. We may, then, suggest updates, whether for utility or cosmetic, that will increase the value of your hotel and raise the likelihood of higher offers.
While this evaluation is integral to determining a fair price point for your hotel for sale, there are also many other things that you can do to ensure the highest possible offer on your hotel property.
Be Well Documented and Accurate
When you sell a hotel, it is very important that you make sure that all hotel income for the past three years is accurately reported and documented with the IRS.
Make Sure to Meet Franchise Standards
If you own a franchise property, make sure all Property Improvement Plans (PIP) and/or inspection requirements are complete (or near completion). Failure to cover these bases will appear as a sizable obstacle or inconvenience to a buyer. In order to draw in higher offers, you will need to make sure that you’re not leaving any loose ends when it comes to the franchise requirements you were responsible for.
Keep Capital Improvement Costs Separate from Maintenance on P&L
On your Profit and Loss Statement, make sure to keep the costs of improving the property separate from regular maintenance. This will keep maintenance costs from looking higher than they are (which will devalue the property to the buyer, leading to lower offers). Also, be able to produce a list of these improvements, along with their costs. Improvements work toward higher value when you sell a hotel.
Clearly Disclose Expenses that a Buyer Will Not Incur When You Sell a Hotel
A qualified buyer that is in the market to buy a hotel will try to estimate investment and operational costs as conclusively as possible (especially if they have a hotel broker). Any breaks in that amount could possibly increase their offer. Make sure to clearly disclose any fees or expenses they will not be responsible for.
When you decide to sell a hotel, pricing is a meticulous process that only an experienced hotel brokerage should handle. Hotel brokers know the careful art of pricing your hotel property at just the right amount to lure the highest possible offer. Don’t make the mistake of trying to do it yourself or leaving it to a real estate broker who doesn’t specialize in the hospitality industry like hotel brokers do. Hire Southeast International Hotel Brokers. You can trust us to get you the highest possible offer.