How Well You Run Your Hotel Factors Into How Easily You Can Sell It
By Mike Handelsman Group General Manager, BizBuySell.com | November 27, 2009
Whether you're planning to sell your hotel in the near future or many years down the road, one of the most important rules to remember is the better care you have taken of the business, the more easily you'll be able to sell it.
This rule might seem like a no-brainer, but it's very common for hotel owners to focus so much on certain areas of the business that they neglect others, ultimately complicating the selling process when it comes time to leave the business.
In some very basic ways, selling a hotel is like selling anything else that has had a previous owner. When someone is in the market for a previously-owned car, for example, they are much more likely to purchase one that has obviously been well-maintained and shows the most promise of suiting their future needs. Similarly, when someone is looking to purchase a hotel, they want to know that the business has been properly run by its previous owner and will allow them the greatest chance for success.
Unfortunately, many business owners fail to keep this in the back of their minds when running their establishments, and then when it comes time to sell must suddenly face the ugly truth: by not putting enough care into certain critical areas of their business along the way, they've positioned themselves for an unnecessarily challenging sales process. This can create an especially difficult situation if the owner is suddenly forced to sell because of an unexpected life event such as a health issue or necessary change in location.
There are a few key considerations hotel owners should keep top of mind at all times in order to help ensure the process will go as smoothly as possible when it's necessary to leave the business. Whether an owner plans to sell the business in one year or doesn't plan to sell it for a long time, addressing the following questions and actively making improvements where needed can pay off in spades when the time comes to put the hotel on the market.
Are Your Financials in Order?