Getting Ready to Sell: Eight Steps to Increasing Your Hotel's Value
By Jan Kalanda Co-Founder, Morgansheer Hospitality | January 22, 2017
To make a sale of you hotel happen at a good price you need to be sure you've optimized the property's value before putting it on the market. We at Morgansheer Hospitality at Level Group have identified eight areas that, correctly addressed, should position your property to attract a good offer.
Review Your Management Company's Performance
If you have retained a management company, review their performance to insure they are performing at the level needed to and grow revenues and occupancy rates. An effective
management company is involved day to day in operations. They should be able
to answer detailed questions about staffing, standard operating procedures,
maintenance status and how the property compares to others in the relevant
competitive set. Press the management company, if necessary, for this
information. You need an accurate picture of where you are now before you
make other decisions.
Conduct a Comprehensive Overview of the Property's Status
Due diligence is critical. Confirm all facts, such as physical conditions, procedures and
anything that concerns hotel operations. Gather a list of employees,
including positions, current salaries, salaries and bonuses paid during the
last three years, and resumes of key employees. In addition, make sure you
have copies of any governmental licenses, permits or consents, and customer
Frequently, hotels for sale are in need of some kind of improvements or
upgrades and these will require spending money. In conjunction with your
management company, or, if you're self-managed, on your own, identify the
improvements or upgrades that are most needed. Prioritize so that you are
spending your money wisely, strategically, and where it will most bolster
your prospects for sale.