Who Usually Buys
- Hotel operators
- Owners of a few properties who want another one close by.
- Real estate investors
- Buyers who mainly want the land and the building.
- Families in the business
- Relatives or longtime managers ready to buy.
Occupancy and Rate Through the Year
A hotel here earns much of its year in a few summer months. Buyers will ask for occupancy and average daily rate by month, for several years, and compare them with nearby properties. Strong shoulder seasons raise value.
Business or Real Estate
Most hotel sales include the building, and the price often follows the property income more than the operating profit. If you own the land, decide early whether to sell it, lease it or keep it.
Read keeping your building when you sell the business for the options.
Franchise and Booking Channels
A franchised hotel carries a license agreement with its own transfer terms and often a required renovation.
An independent relies more on online travel sites and direct guests. Buyers want to know what share of bookings comes from each channel and what it costs.
Condition and Capital Needs
Expect a buyer to inspect roofs, rooms, pools and mechanical systems, and to price in anything due soon. Records of recent upgrades help. So does a clear list of what is planned.
Records That Help
- Monthly occupancy, rate and revenue per room
- Staffing levels by season
- Insurance history and storm repairs
- Lodging and meals tax filings that match sales
Sales and lodging taxes come up in every hotel deal, so review Virginia sales tax successor liability. To get a number, request a sale estimate.