Learn more about hotel sales and acquisition.

Buying a hotel is a big commitment that requires plenty of research and a team of professionals that understands all the ins and outs of each potential transaction. Here at Southeast International Hotel Brokers, we want all of our clients to have the best possible experience throughout the acquisition process, which is why we have designed this guide to prepare you for success in hotel sales. Below, are the first three steps of the acquisition process.

Step 1 – Finding A Broker

Hotel sales are a big deal, and while you could do all of the searching on your own, it is much easier to find what you want through the services of an experienced hotel brokerage firm. This individual or team will point you in the direction of an affordable acquisition that has all of the features you are seeking in a new property. They will also minimize much of the paperwork for you.

Step 2 – Initial Due Diligence for Hotel Sales

So you’ve browsed through the hotel listings in the area you wish to open your business, and you finally found the building of your dreams. Now what? Before you make an offer, there are some facts you need to understand about hotel sales. As a business, your acquisition is meant to earn an income – and in order to do this, it must be ready, or near ready to take on guests, and its financial performance must support your debt service, expenses and financial goals.

Before buying, make sure that you are privy to an outline containing the number of guest rooms and outlying rooms throughout the building, as well as inventory, service providers, a list of permits currently held, or up for renewal, and contractual information on staff.

Step 3 – Negotiations and Purchase Agreements

With your initial research completed and your trusted hotel broker with you each step of the way, you are ready for the next step in the acquisition process of the hotel sales experience. Negotiating on cost is a standard part of this process, and most owners realize that you are going to haggle them down from their asking price – at least slightly. Your hotel broker can help you determine what the best possible number is for your budget and ongoing financial needs.

In addition to negotiating the price, your hotel broker assists in negotiating the other contract terms and conditions. You may want to have a real estate attorney draw up your purchase agreement, ensuring it contains a very specific set of clauses. However, it is often simpler and cheaper to work from an agreement drawn up by the other party. Whatever you choose to do, be certain to thoroughly read any documentation before you sign it and communicate with your hotel broker throughout this process.

Stay tuned to our blog for the continuation of steps 4 through 6 in the acquisition process. To speak with a member of our team now, contact Southeast International Hotel Brokers today.

DISCLAIMER:  This list is intended as a guideline and should not be construed as all-inclusive of the steps needed prior to closing of your purchase.