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.

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Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.