1. Access the timing. Is it a right time to sell?Timing plays an important role, both for a buyer or a hotel owner. A simple assessment of demand and supply for the same product and segment would indicate who commands a stronger position during a sale consideration.
2. A balanced salable price keeps the buyer interested.Identifying and fixing a price tag is the most important aspect, which needs to be carefully identified by the owners. Asking for a lower price is leaving money on the table, while on the other hand demanding an unrealistic price would not attract any buyer. When selling a hotel it’s a mix match, and it all counts considering the location advantages, property condition, scope of improvements and the past business performances. These are the strong points which work in favour of the owners. A balanced priced would keep the buyer interested and help the owner to smoothly exit the property.
3. Hotel inspection and ownership titles.It may take several rounds to inspect a hotel by the representatives of the buyer, such as an investment team which may make an initial visit followed by the legal and the technical teams. A set of ownership details should be kept handy for the inspection by the legal team. Keep calm and be patient
4. What keeps an investors or buyer interested?From an investor or buyers perspective, the hotel location advantages, destination, past and future and business prospects all count. The returns on investments and business sustainability are the key factors which interest a potential investor or buyer while exploring an investment in hotels. All past business claims by owners should be supported by documented proofs, like …… P&L statements audited reports etc.
5. Be selective while appointing your consultant or representative broker.It is important that the consulting broker engaged by the owner has a deep understanding of hotel business transactions. As a representative the consultant or broker should operate as a conduit between the owner and the buyers, facilitating all sale proceedings, this include price negotiations, organizing site visits and conducting a property tour.