Hotel seller's checklist. Image has checkboxes on a piece of paper.

Hotel Seller’s Checklist: What to do to maximize your property sale in 2024

Bob Doak

As the New England market remains strong this year–and hospitality employment continues to rebound in Maine and Massachusetts–hotel sellers would be wise to do everything they can to put their property in the best light possible.

But a lot goes into maximizing your hotel’s value—we’re not just talking about room renovations. We’ve compiled some best practices from our recent sales to make sure you get the best deal possible when preparing your hotel for sale in 2024.

Think about your why.

Are you not generating enough income from your hotel? Do you want to expand in other areas? Or is it just time to move on? Selling your hotel, like any other business, is a big move that takes time and effort. There are fees and terms to consider when selling your hotel–and it could be that delaying a sale to make improvements, or trying another approach, could be in your best interest.

Do your research.

Sure, surveys indicate that 72% of Americans plan to maintain or increase hotel stays this year, but what does that mean for New England specifically? Your outlook may be very different in Maine than it would be in Rhode Island. Take a look at recent hotel sales in your area, and especially ones that match the size and profile of your property.

(If this seems like a lot, no problem: We can help.)

Partner with an experienced broker.

Your hotel is likely one of the biggest investments you’ve made. Now isn’t the time to go it alone. You’ll need the latest valuation for your hotel, incorporating factors such as net operating income (NOI), revenue per available room (RevPAR), and (maybe most importantly), average daily rate (ADR). A good broker will also consider intangibles like brand equity, local business relationships, and customer loyalty in your valuation.

Get your records–and staff–in order.

Make sure all financial statements and other documents are organized and thorough. We recommend getting an audit to make sure you, and your potential buyers, have a complete view of your hotel’s profit history.

And while you might want to consider a confidential listing to minimize staff turnover, it’s important to keep key staff in the loop. Any interruptions in bookings or customer experience could have a negative impact on your hotel’s value. You want to be honest—after all, no one wants to find out secondhand that their place of employment is on the market—but discreet.

Consider whether renovations are in your best interest.

It’s important to highlight your property’s appeal, but you should evaluate the financial implications at play. Sometimes an as-is sale is the most prudent choice, especially when the renovations needed outweigh the potential increase in value. In fact, some buyers actively seek properties in need of updates so they can renovate according to their own design and branding preferences.


With a successfully completed checklist—and an assertive agent by your side—you should be able to generate several interested buyers for your property.

Need help ticking the boxes? Let’s talk. Farrell & Doak are trusted, knowledgeable hospitality real estate brokers and agents that can assist you every step of the way.

If you liked this article, why not share it with someone?

Facebook
X
LinkedIn
WhatsApp
Email
Print
Other recent articles:

Join our mailing list

... and receive updates and announcements on new properties for sale!