When Selling a Hotel for Less Makes Sense

If a hotel is sitting on the market for a long time, it’s common to wonder if selling a hotel under appraisal value makes sense. In certain cases, this is the best course of action, but you should also look at the other factors at play before making that decision. Today in the Southeast International Hotel Brokers blog, we’ll talk about selling a hotel under appraisal price and when it’s a good idea.

When Selling a Hotel for Less Makes Sense

Selling a hotel for less isn’t ideal, but sometimes it’s necessary. One of the most common reasons for selling a hotel under appraisal is if it’s been sitting on the market for an extensive amount of time, and you’re not getting offers. Sometimes the market just isn’t hot, and everyone is having difficulty moving their properties. This doesn’t mean your hotel won’t sell for appraisal eventually, but you may have to wait longer than normal.

Another common reason for selling a hotel for less than its value is when you’re in a rush to sell. If you simply need to the sale to go through as quickly as possible, then lowering the price is an effective way to do so. Keep in mind that you are losing money by doing this, but you will get money faster. It’s important to weigh the pros and cons of this before making a decision.

Make Sure Other Factors Aren’t Making Selling Difficult

When a hotel isn’t selling, sometimes it’s easy to blame the market. Before making a snap judgment and selling a hotel for less than the appraised value, make sure other factors aren’t affecting the sale. For instance, what state is the hotel in? If your hotel is in need of some updates and repairs, it may be harder to move, even if the appraisal has taken these factors into account. Some minor aesthetic updates may be enough to make it more appealing to a potential buyer. More commonly, a factor that affects someone’s ability to sell their property is ineffective marketing strategies. Maybe your hotel isn’t listed on enough sites. Maybe you’re on enough sites, but the pictures you have don’t properly convey the value of your hotel. The fact is, a lot goes into marketing a sale and it can be hard to do on your own.

Contact Southeast International Hotel Brokers

If you’re having trouble selling a hotel, contact the experts at Southeast International Hotel Brokers. We have over 50 years of experience in the hotel brokerage industry. We can walk you through the entire selling process, answering any questions you have along the way. Our network will help you reach the most potential buyers possible. Contact us today for more information, or continue browsing our website.