Is Selling a Hotel Much Different from Selling a Motel?
Selling a hotel and selling a motel are two different endeavors, but the processes also have some things in common. Here at Southeast International Hotel Brokers, we have experience selling both of these property types. Throughout the years, we’ve seen the best way to sell both. Today in the Southeast International Hotel Brokers blog, we’ll discuss these similarities and differences in further depth.
Selling a hotel and selling a motel follows the same general rules. For instance, both are extremely dependant on location when determining the selling price. Location is king in the hospitality industry, and whether you’re selling a hotel or motel, this rule holds true. Now, a good hotel location is obviously different than a good motel location. A hotel needs to be located within a city to be considered a high-traffic property, whereas a motel typically lies on the outskirts, on highways, and near airports as a more affordable option. Of course, how profitable the property you’re selling plays a big factor. If you have a failing hotel or motel, it’s going to be harder to sell than one that does well.
There are quite a few differences in selling a hotel and selling a motel. For one, a hotel is obviously going to be appealing to a much higher budget range. In general, a hotel is a much bigger investment, and sometimes riskier. Hotels often have features like restaurants to consider, whereas motels are fairly straightforward. This doesn’t necessarily mean one is easier to sell than the other, but it is something to consider. Also, the busy seasons for these two types of property can differ wildly. If a motel is located on a highway where a lot of travelers pass through year-round, they may always have guests coming in and out. A hotel located in Chicago may have a ton of business in the summer, but it would probably slow down significantly during the winter. Of course, there are situations where the reverse can be true. It’s difficult to try and pinpoint general differences between selling a hotel and motel, mostly because the process of selling any property is going to differ.
Selling a Hotel or Motel with Southeast International
If you’re selling a hotel or motel, make sure you use the services of a professional hotel brokerage. Southeast International Hotel Brokers will walk you through the entire selling process, making it as easy for you as possible. For more information, contact us today.