How is Price Determined When I Sell My Hotel

It’s common to wonder what makes up the price of a hotel and how the selling price is determined. The truth is, there are a variety of factors that go into the price, and it can be tricky to give an outline of the exact reasons behind the pricing of hotels. Each hotel and situation is unique. With that being said, you may still be asking where do I start when I want to sell my hotel? Today in the Southeast International Hotel Brokers blog, we give you a simplified guide to how hotel prices are set, keeping in mind that not all hotels will necessarily follow this rubric.

How Do I Set the Price When I Sell My Hotel?

The biggest obstacle when people ask us “how much can I sell my hotel for?” is helping them to look at the price objectively. If you’ve run a hotel for years, you can feel like the work and effort you put into it should factor into the price. Unfortunately, sentiment holds no monetary value to the buyer. The primary factors that will determine your selling price is market value, comparative value, and the future income value.

Market value is exactly how it sounds, what the hotel would sell for in the current market with current market factors holding true. The comparative value isn’t as big of a factor, but it’s sometimes helpful if you’re just trying to estimate how much you can sell for.

Comparative value looks at the selling price of similar properties in the area or in similar markets. Keep in mind, comparative value is just for to give you a very rough estimate if you’re wondering “what can I sell my hotel for?”

Finally, future income value plays a big part. This is essentially estimating how much profit your hotel would turn in the coming years. This is important because it helps buyers estimate when they can start seeing a return on their investment.

When Should I Change the Price?

Maybe you’re saying, “I’ve been trying to sell my hotel for a while, and it’s set at market price, why isn’t it selling?” Now, that’s a pretty loaded question. There are a wide variety of reasons that a hotel may not be selling. Before lowering your selling price, you should do some investigating into why it’s not selling. Has anyone expressed interest at all? If not, maybe you’re hotel listings aren’t reaching the right people. Have you received offers, but they fall through? Maybe you’re not used to the selling process, and potentially good offers are slipping through your fingers because of it. This is understandable, as your business is running hotels, not selling them. That’s where Southeast International Hotel Brokers come in.

Contact Southeast International Hotel Brokers Today

Now that I have a concept of pricing for when I sell my hotel, what are my next steps? Great question! The answer is, contact the hotel brokerage professionals at Southeast International Hotel Brokers. We can help you through the buying and selling process, so you don’t have to worry about the details. Our extensive hotel listings network make sure you’re reaching the right audience. Contact Southeast International Hotel Brokers today for more information and to see how we can help you.