Insider: 10 Ways to Make Your Hotel Attractive to Investors
By Roger Hill, Chief Operating Officer, Gettys
Mr. Roger Hill
Between the difficult credit market and uncertainty in the real estate world, hotel owners face a new, challenging market in 2008. Even as emerging international markets spur growth outside the United States, American hoteliers are re-evaluating their approach to grabbing the attention of potential property investors and looking to fine-tune their hotels.
The pipeline for new construction is full, and the amount of planned hotel projects is at an all-time high, but only a small number of properties are actually breaking ground. Instead, the purchase and renovation of existing hotels is taking precedence right now, according to PKF Hospitality Research. Tightening lending and investment budgets may pinch the industry for the next few years, but it’s important to remember that industry trends and analyst opinions on the hotel investment market don’t always reflect directly on your property. Each hotel is different, and the opportunity exists to elevate your property over competitors with the goal of attracting buyers. The focus of hoteliers must relate directly to the priorities of potential investors.
The good news is that capital is still available, and deals continue to close. Competition for funding increases every month, but you can make your property attractive to investors and keep your hotel ahead of the pack. Over the last 20 years, I have enjoyed the privilege of helping many developers conduct due diligence on their investments, and helped hoteliers realize and maximize the value of their properties. As both a designer and an investor, I understand both sides of the development equation. When investors are evaluating your property, they scrutinize everything from the financial performance of your hotel to the design, programming, and guest experience. In doing so, they focus on both the aesthetic and operational aspects of your property. Preparation and positioning your property correctly helps you obtain a well-suited buyer and earn top dollar.
Keep in mind that any positive alterations you make to your property not only lift your presence in front of potential investors, but also increase levels of guest satisfaction. From upgrades in finishes to learning the best ways to emphasize the special nuances and attributes of your hotel, these steps work to improve your guests’ experiences.
In the Hotel Business Review, my article, “10 Ways to Make Your Hotel Attractive to Investors,” provides best practices to increase the exposure of your hotel and enhance your success rate when trying to attract the ideal buyer for your property. Everything from your hotel’s design to operations to revenue is open for improvement. By creatively analyzing your hotel and its potential, you can make an action plan to attract investors and make the sale. Working through these steps takes you logically through a sequence of analysis that starts with looking at your own property with an open mind and ends with putting on a good show for investors. Focusing on amenities, programming and space planning, and revenue-generation opportunities helps you trouble-shoot and identify your property’s strengths before investors walk in the doors.
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Sincerely,
Roger Hill
Chief Executive Officer
Gettys
www.gettys.com
