What Not to Do in Hotel Sales

The time has come to sell your hotel or motel property, and you want to present your property in a way that maximizes your profits.

As the hotel sales marketing process is filled with a myriad of details that need to be tended to, what are things that a hotelier should avoid doing during this time, and how can the hotel sales process be streamlined?

The Timing of Hotel Sales

Hotel buyers will be looking to take ownership of new properties at the beginning of a property’s busy season, which is spring or summer for most locales. The seller must consider this and begin their preparations to market their property up to a full year in advance. Timing really is everything in hotel sales. Hotel listings must be ready to put on the market up to six months before the busy season commences to maximize profit. This means beginning the sales preparation work up to a year or more in advance. Once the decision to sell has been made, don’t rush – rather, plan your work and work your plan!

Hotel Records & Finances

Are the hotel’s financial records in good order so that a prospective buyer can know what the hotel’s financial strengths and weaknesses are? Is your balance statement up to date? Is the property itself up to date? Are there repairs to be made or other improvements? Are the rooms in good condition?

Just as your hotel needs to be clean and neat to attract customers, it also needs to be attractive to entice a potential buyer. Marketing a rundown building with poor records will not maximize sale profits.

Inspections

As part of the hotel sales process, most buyers will want to see inspection reports ranging from the utility systems of a hotel to kitchen inspections (if applicable). Some may even want to see inspections pertaining to the environmental friendliness and energy efficiency of a given property. As the seller of the hotel, it’s imperative that you do not delay either preparing your property for these inspections or, even better, have them done as part of your sales preparations. You want potential buyers to be able to have easy access to this information.

General Maintenance

Just as keeping your hotel property presentable is important for attracting potential customers, you want to make sure that hotel property for sale is in top physical condition. Is the physical facility in good shape – good paint, wallpaper, carpet, etcetera? No burnt out light bulbs? Clean and tidy, no litter around? Is your roof sound? Are the grounds well kept and beautiful? A little bit of “spit-and-polish” goes a long way. Make sure your staff is on top of keeping the place beautiful. Don’t neglect this aspect of the hotel sales process!

How to Manage all the Details

Managing all the pre-hotel sales details can be daunting. While some sellers seem to think they can manage it all on their own using online sales, they may be underestimating the nuances. This “seat-of-the-pants” type of selling invariably leads to overlooked details and a lower sales price which, in turn, reduces profit.
Southeast International Hotel Brokers, with our 50 years of experience in hotel sales, is ready to assist you in selling your hotel and leading you through the myriad of details associated with the sales process. This includes finding qualified buyers for your property so that your hotel sales process goes smoothly and successfully. Contact us today.