Selling a lodging property is a specialized skill that combines real estate knowledge with knowledge of a lodging business. Real estate brokers know real estate in general, but relatively few real estate brokers are also business brokers who are knowledgeable about or experienced in lodging sales.
Lodging Brokers also know about zoning uses, use permits, analyzing a return on investment, lending/financing scenarios for pre-qualified buyers, commercial financing sources, escrow and contract procedures, food and beverage operations, ABC requirements, business and resale inventory pro-rations, change over procedures on the close of escrow, and marketing for national exposure.
Several approximation tools are available in the lodging industry to help establish a range of value in which a business and property will sell. These tools function as comparable sales in comparing one lodging property to other similar lodging properties. The price suggested by these methods will be impacted by each property's unique qualities: recent profitability, land or buildings suitable for expansion, furnishings and fixtures, adequate parking, number of permitted rooms, historical significance, established ongoing concerns of the business, economic influences, availability of financing, etc.
No single tool will give an best asking price alone; the lodging broker's specialized knowledge and experience will help you determine the most appropriate asking price.
To learn more about Lodging Brokers Network, Inc. contact us at (707) 257-2759