For hotel & motel owners
How to Sell Your Hotel or Motel
Selling a hotel isn't like selling a house. Buyers want your numbers, lenders want more, and if you're branded the franchise company has a say. Here's how we do it, quietly and on your terms.
Confidentiality
Your staff, your brand, and your competitors won't find out from us.
- We market the property without naming it. The name comes only after a buyer signs a confidentiality agreement.
- Buyers show proof of funds or a lender letter before any financials go out.
- We ask about hotel experience and how they'll pay, so tire-kickers never see your P&Ls.
- Showings and inspections are scheduled around your operation.
No obligation
Start with a free broker opinion of value. If you decide not to sell, nothing changes and nobody knows you asked.
Get my free opinion of valueThe process
How we sell your hotel
- We talk, and you send your numbers.A phone call or a visit: what you have, why you're selling, your timing, and what you owe. Then three years of monthly room revenue, occupancy and rate, and P&Ls.
- We give you a free broker opinion of value.A realistic price range and the reasons behind it. If your price is too high or too low, we'll say so.
- You decide.If you want to sell, we sign a listing agreement. It spells out the price, the term, and our fee.
- We market it quietly and screen buyers.Our buyer list, the HBI network, and online listing sites when it makes sense. Qualified buyers only.
- Offers, due diligence, and closing.We bring you every legitimate offer and tell you what we think of each. Then inspections, financing (often SBA), franchise approval and any PIP, title, and closing. We stay on it until it closes.
What to have ready
- Monthly room revenue, occupancy, and ADR for 3 years
- P&Ls for 3 years, plus year-to-date
- Tax returns (buyers' lenders will ask)
- STR reports, if you get them
- Franchise agreement, PIP, and any brand inspection reports
- Surveys, inspections, appraisals, and a list of improvements with dates
- Any leases, equipment loans, or contracts that transfer
Selling a franchise hotel
If you're branded, the buyer has to be approved by the franchisor, and the brand will usually require a property improvement plan (PIP) for the new owner. Buyers price the PIP into their offer. Better to know what it is before we set the price.
Thinking about carrying a note?
Seller financing can widen your buyer pool and bring in interest income, but you take on the risk that the buyer doesn't pay. Run some numbers in our hotel financing calculator, then talk to us, your CPA, and your attorney.
How to choose a hotel broker
Ask any broker:
- How many hotels have you sold, and where? Can I see them?
- Who are your buyers, and how do you find them?
- How do you keep my sale confidential?
- What do you think it's worth, and why?
- Who will actually handle my sale?
What we owe you
When you list with us, we work for you. We'll seek a price in line with the market. We'll tell you if we think your asking price is too high or too low. We'll bring you every legitimate offer. We'll tell you anything we learn that could affect the sale. We'll avoid conflicts of interest and keep what you tell us in confidence.
Owners ask us
What does it cost? What are your fees?
The broker opinion of value is free. Commissions are negotiable; ours is written into the listing agreement and paid when the sale closes. Ask us about any other costs before you sign.
Will my staff, guests, or the brand find out?
Not from us. We don't name the property until a buyer signs a confidentiality agreement, and we screen buyers before they see anything.
How do you decide what my hotel is worth?
We look at three years of revenue and expenses, occupancy and rate, condition, any brand requirements (PIP), and what similar hotels have actually sold for. You get a range and the reasons behind it. It’s a broker opinion of value, not an appraisal.
Should I fix things before I sell?
Sometimes. Ask us first. Some fixes pay for themselves; many don’t.
Can I sell with a 1031 exchange or carry the note?
Yes, both are common. Talk to your CPA and attorney; we’ll work with them. (We don’t give tax or legal advice.) To see what carrying a note could look like, try our hotel financing calculator.
Do you sell motels and small properties?
Yes. Many of our sales are independent motels.