Sell Your Hotel Faster, and For More Money, by Providing Seller Financing

By Mike Handelsman Group General Manager, BizBuySell.com | June 06, 2009

There's nothing more frustrating than a listed business that attracts a lot of attention, but no buyers who are willing to seal the deal. Unfortunately, that's exactly the situation many hotel owners are facing in today's marketplace.

Most of the time, the hotel isn't the problem. In fact, a business that generates significant attention in the marketplace is usually a good candidate for a sale. Instead, the issue is most often the buyers' inability to secure financing at the owner's asking price. That leaves owners with two options: Either lower the asking price or work with the buyer to overcome sale barriers.

A seller's willingness to finance at least part of a business sale has always been a strong selling point for buyers, but in recent months it has become essential. With many potential business buyers unable to access the necessary funds from lending institutions, hotel sellers who decide to offer seller financing are likely to have much more success selling their business than those who do not.

While it sounds like a no-brainer for hotel sellers to offer financing, they should be careful not to do so unprepared. When making the decision to offer financing, there is a great deal to consider and research in order to help ensure a successful, smooth process. To stay on track, sellers need to follow some obvious - and some not so obvious - dos and don'ts.

Can seller financing be risky? Absolutely, but under the right circumstances it can also be a financial boon. If financing the sale of your hotel sounds like a good idea, don't make another move until you've carefully considered the lessons being learned by other seller-financers.

Evaluate the Risk

Coming up in January 2018...

Mobile Technology: Relentless Innovation

Technology has become a crucial component in attracting and retaining hotel guests, and the need to enhance a guest’s technology experience is driving a relentless pace of innovation. To meet and exceed guest expectations, 54% of hotels will spend more on technology in 2018, and mobile solutions in particular will top the list of capital investments. Many hotels are integrating mobile booking, mobile keys, mobile payments and mobile check-in into their operations. Other hotels are emphasizing the in-room experience, boosting bandwidth and upgrading flat screen TVs to more easily interface with guest mobile devices. And though not yet mainstream, there are many exciting technology developments on the near horizon. The Internet of Things (loT) is taking form in some places, and can be found in guest room control systems, voice activation systems, and in wearable sensors that can be used for access and payment options. Virtual reality headsets are available at some hotels so guests can enjoy virtual trips to exotic locations or if off-property, preview conference facilities and guest rooms. How long will it be before a hotel employs a fleet of robots for room service, or utilizes a hologram as a concierge, or installs gesture-controlled walls that feature interactive digital displays? Some hotels are already using augmented reality for translation services, or interactive wall maps, or even virtual décor. This pace of innovation is challenging property owners and brands to stay on top of the latest technology trends while still addressing current projects. The January Hotel Business Review will explore what some hotels are doing to maximize their opportunities in the mobile technology space.