Getting Ready to Sell: Eight Steps to Increasing Your Hotel's Value

By Jan Kalanda Co-Founder, Morgansheer Hospitality | January 22, 2017

To make a sale of you hotel happen at a good price you need to be sure you’ve optimized the property’s value before putting it on the market. We at Morgansheer Hospitality at Level Group have identified eight areas that, correctly addressed, should position your property to attract a good offer.

  1. Review Your Management Company’s Performance

    If you have retained a management company, review their performance to insure they are performing at the level needed to and grow revenues and occupancy rates. An effective
    management company is involved day to day in operations. They should be able
    to answer detailed questions about staffing, standard operating procedures,
    maintenance status and how the property compares to others in the relevant
    competitive set. Press the management company, if necessary, for this
    information. You need an accurate picture of where you are now before you
    make other decisions.

  2. Conduct a Comprehensive Overview of the Property’s Status

    Due diligence is critical. Confirm all facts, such as physical conditions, procedures and
    anything that concerns hotel operations. Gather a list of employees,
    including positions, current salaries, salaries and bonuses paid during the
    last three years, and resumes of key employees. In addition, make sure you
    have copies of any governmental licenses, permits or consents, and customer
    information.

    Frequently, hotels for sale are in need of some kind of improvements or
    upgrades and these will require spending money. In conjunction with your
    management company, or, if you’re self-managed, on your own, identify the
    improvements or upgrades that are most needed. Prioritize so that you are
    spending your money wisely, strategically, and where it will most bolster
    your prospects for sale.

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.