HotelNewsNow
12/07/18

Buying & Selling Hotels
First understanding the fundamentals is the key to successfully buying or selling any hotel, though those fundamentals are different in every deal.
By the HNN editorial staff

http://www.hotelnewsnow.com/Articles/291795/Buying-and-Selling-Hotels

Know the property
“We analyze the hotel’s historical financials and compare their current performance with the market to see if there are any areas of upside. We inspect the hotel and prepare an analysis based on the most recent sales comparables. It is critical that we and our client are all on the same page as to the value of the hotel and what we expect it will sell for. If we are not on the same page, then we do not proceed forward with the listing.”
–Alan Reay
President, Atlas Hospitality Group

Understand buyers’ and sellers’ needs
“We create a strategic plan in conjunction with the client to best achieve their goals. That plan may include disposition of the asset(s), debt refinancing, equity recapitalization or to continue to hold the asset(s). Every plan is different as every client’s goals are different.”
–Lee Hunter
COO, Hunter Hotel Advisors

Do due diligence
“Every hotel transaction is different and requires a unique due-diligence plan. Hidden details not uncovered can doom the financial merits of an otherwise profitable deal, turning the transaction into a costly mistake. Intensive due diligence will uncover key information that may not be readily apparent or available in evaluating the value of a property or portfolio. It’s important to understand the fundamentals of the property, seller, operations, market, demand generators, competitive set, new supply and financing to reduce and mitigate financial uncertainties. Rigorous due diligence reduces the possibility of post-transaction surprises. Don’t rush into a deal, and stay objective throughout the analysis phase.”
–Mary Beth Cutshall
SVP and Chief Business Development Officer, Hospitality Ventures Management Group