What is my Hotel worth?
We find that most owners have a general idea of the value of their property. They read trade publications, review property offerings/listings and follow local sales. On the other hand, most owners do not have the wealth of information available to our professionals, which is a result of our experience and our work transacting hotel real estate. We are constantly interacting with buyers, sellers, lenders and appraisers, so we have a unique insight to hotel investment. If you wish to discuss the value of your property, we would enjoy hearing from you. And, we would certainly consider it a privilege to provide a no cost evaluation of your property.
If I list my Hotel for sale, what information do I need to supply to ReMax Realty Enterprises?
For the optimum results, it is advisable to take the time, upfront, to supply all of the information requested by us. We will provide you with a comprehensive checklist of due diligence items needed to effectively market your property.
What are your fees to exclusively market my Hotel for sale?
Our fee structure varies with each deal and each marketing assignment is specific to each asset. One of our experienced professionals would enjoy the opportunity to discuss your property and your objectives. At that time, our marketing program and proposed fee schedule would be explained. A personal face-to-face meeting, at your hotel, or at a location of your choosing, is highly recommended. Of course, there are no fees, until we close the deal.
I don’t want to “Tie up” my Hotel. Will you market my Hotel without an exclusive listing?
No, except in very unusual circumstances. Open listings will provide limited exposure for your property simply because brokers contact those few prospects where the broker feels “protected”. Secondly, the property information is often inadequate because the owner (and broker) do not devote the necessary time to compile complete information. Both of the foregoing activities are a disservice to the marketing effort. On rare occasions, we will accept a one time open listing for a specific purpose. However, it is not our standard practice. We highly discourage our brokers from accepting non-exclusive assignments. We owe our “exclusive” clients our full attention and effort. Open listings will never get the attention required to market the property effectively, no matter who the seller is or who has the “listing”.
Confidentially?
Yes, it can, however strict confidentiality can possibly encumber the marketing effort to the extent that the property information will be presented to a smaller universe of buyers.
At Jake Pedler Hotel/ Hospitality it has been our experience that staff members deal with a possible sale better than owners do. In virtually every one of our transactions, most or all of the staff are retained upon transfer of ownership. Even though you, as owner, attempt to remain as discreet as possible, your staff will know that something is up, especially as the hotel is shown to prospects. As you enter into a contract, the pending sale will be nearly impossible to disguise.
Notwithstanding any special circumstances, we have found that direct and honest communication with the staff creates less stress for all. For those wanting strict confidentiality, the larger the asset, the easier it is to maintain confidentiality.
If you find a buyer for my property, will you help with the contract and the closing?
We pride ourselves with monitoring the process from Contract to Closing. We have standard (lawyer approved) hotel contracts that are available for use by your lawyer. Or, your lawyer may provide his/her own document. Through our comprehensive and detailed checklists, we will manage the deal path closely and will assist the buyer and seller in fulfilling the terms of the Contract.
The price seems a bit high. will your seller take less? Or...What is the seller’s bottom line?
Anyone contemplating the purchase of a hotel would love to know the answer. However, as the seller’s representative, we cannot legally disclose the seller’s “number”, even if we knew it. As agents for the seller, it is our responsibility to create the best possible deal for our client. Correspondingly, it is also our duty to serve our buyer prospects with honesty and integrity. Our best advise is to make a reasonable offer based on your own evaluation and let the seller respond.
Should I purchase a franchised or independent property?
There are too many variables to provide a direct answer to this question within the context of this format. However, a couple of thoughts may be helpful as you evaluate offerings.
Typically, franchised hotels are easier to finance (lender’s prefer franchises). In addition, franchises provide a reservation system, a standardized business model, and standards of business practice. On the other hand, franchised hotels incur ongoing fees that can exceed 10% of revenue, which can be expensive. There is also an “up front” franchise fee, in order to become part of the system. In spite of the higher costs it may be more beneficial to have that Brand work for you.
As a contrast, we have clients who specifically request independent properties. Although they are more difficult to finance, there aren’t any franchise fees to pay, which seems to be the most common motivator for those who wish to purchase an independent hotel. Correspondingly, the standards of the business are set by the owner, not the franchise company and a fair number of operators prefer the independence.