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How to Get a Hotel Ready to Sell

Selling a hotel is easier when the records are ready before a buyer asks. A buyer who finds everything in order is more likely to trust your numbers and less likely to ask for a lower price.

What a buyer will ask for

• Three years of monthly profit and loss statements.
• A report that compares your hotel with nearby hotels, such as one from STR.
• Your franchise agreement, with its end date, any required upgrades and the transfer fee.
• Property tax bills, and any appeal.
• A list of every contract a buyer would take over.
• Who works for you, and who a buyer would need to keep.
• Licenses, permits and inspections, all current.
• Your loan payoff and any prepayment penalty.

Fix what shows

Repairs a guest or a buyer can see send a message about everything they cannot. Fix the visible ones first.

Know your number

Know what a buyer is likely to count as your profit before you hear it from a buyer. Our guide to valuing a hotel shows how.

Talk to the right people

A licensed hotel broker, an appraiser, your accountant and your attorney each see something different. Sleeping Value is not a broker and does not list or sell hotels. It helps you arrive prepared.