So, you’re looking to sell your hotel. You have a great property in a fantastic location with updated rooms and equipment, and you expect to receive a fair price with these features. Or, you’re looking to buy your first property and are excited about the prospect of owning and running a hotel.
Whether you’re buying or selling however, the price point is usually much different than what you expect. There are dozens of factors that go into the value of a hotel. Let’s take a look at a few significant points to consider as you peruse hotel properties for sale.
What seems like a stellar location to you may, in reality, actually be quite average. Look at your hotel’s location objectively, or better yet, get an honest opinion from a neutral party, like an appraiser. Take this opinion seriously, and use it as a tool as you begin the selling process. Having an honest opinion of your property will give you a clearer insight into the property’s value, and it will make a buying or selling decision that much easier. Plus, soliciting the opinion of an appraiser or legal expert gives you an expert’s opinion on the value of the property and will leave no room for surprises in the price. In addition, do your due diligence – What are the demand generators around the location? Are there new hotels slated to be built in the area? Does the location have proper ingress and egress? All of these are questions which can set your location apart from others and rather make or break your hotel deal.
Sure, the hotel is in a great location, but what does the occupancy rate look like? Is the hotel around the block booking more customers on the daily? The occupancy rate of the hotel you’re looking to sell or buy is one of the most important factors that is weighed into the value of the property.
Does the landscape out front need some upkeep? Would a fresh coat of paint or repairs to the sidewalks heighten the aesthetic of the property? What makes the hotel property unique, and what is it that attracts customers? In the world of business, appearances are everything, and that can make or break a deal when it comes to buying hotel loans.
Hotel properties are more lucrative than ever. If you’re looking to connect with experts who are knowledgeable in the field of hotel properties for sale, contact us at New Gen Advisory. We can review the ins and outs of hotel values, so when it comes time to buy or sell a property, there are no surprises.