How to sell a hotel

1. Land

• Own or leased?
• Market value of land in the location
• Potential for expansion, reconstruction

2. Building and infrastructure

• Number of rooms and their condition
• Year of construction and date of the last major renovation
• Physical and moral deterioration of the building and when the renovation took place
• Additional facilities (swimming pools, restaurants, spas, conference halls)
• Cost of the building
• Transaction price for similar hotels
• Renovation cost (if required)

3. Business profitability

• ADR (Average Daily Rate) — average price per night
• Occupancy Rate — average occupancy
• RevPAR — revenue per room (Revenue Per Available Room)
• GOP (Gross Operating Profit) — gross operating profit
• OE (Operating Expenses) — operating expenses
• EBITDA — Earnings before interest, taxes, depreciation and amortization for assessing net profitability
• Net Profit — Net profit. GOP – Management expenses – Depreciation – Interest on loans – Taxes
• Revenue increase potential

4. Legal status

• Ownership type (legal entity or individual, SPV)
• Clear title and absence of encumbrances

5. Franchise or independent hotel

• Availability of a valid franchise agreement (Wyndham, Marriott, Accor, etc.)
• Term of the contract and terms of its transfer
• Royalty cost
• PIP (Property Improvement Plan) - a renovation plan together with a schedule for the last 3 years and obligations for the duration of the current contract with obligations for capital expenditures and renovation (CapEx)

6. Intangible assets

• Brand, reputation on OTA (Booking, Agoda)
• Website, social networks, CRM-guest database
• Alcohol licenses, swimming pool, entertainment

7. Personnel and hotel management options

• In-house management team (is it possible save)
• International Network Management
• Labour Conditions, Contracts

Internal brokerage of the hotel chain to which your hotel belongs

Example: selling a hotel through the internal team of Wyndham, Hilton, Marriott, etc.

✅ Pros:

Target audience — buyers are already loyal to the brand and know the standards.

Understanding the business model — brokers know PIP, royalty, CapEx and requirements.

Simplified legal integration — easier to preserve the brand when changing ownership.

International reach — a base of global investors within the network.

❌ Cons:

Often there is no complete independence — priority to buyers who will continue the franchise.

The brand can dictate the terms (who will buy, on what terms, requirements for the buyer).

Usually lower in price.

Do not work with the external market.

2. Sale to investment funds and Family Office

Example: targeted sale to high-capital properties — real estate funds, family offices, private investment groups.

✅ Pros:

The check can be above average — they are ready to pay for stability and a premium asset.

Decisions are made quickly (if the interest coincides with the investment strategy).

Often not tied to a brand — you can change the franchise or make it an independent hotel.

They evaluate DCF, IRR, EBITDA — you can competently justify the price.

❌ Cons:

Long due diligence — funds check everything thoroughly (up to CapEx and easements)

They may require strict transaction conditions (preliminary audits, restructuring, asset cleansing).

Prepared presentations, models, reports are needed (serious consulting will be required).

They do not buy hotels “on emotions” — everything must be “on paper” and profitable.

3. Sale through consulting companies and specialized real estate agencies

Example: a professional international or regional company with experience in hospitality transactions.

✅ Pros:

A deep customer base — from local investors to international networks and funds.

Experience in structuring deals — they know how to work with franchises, hotels with debts, PIP, etc.

Strong presentation of the property — they make a Teaser, IM, Data Room and a financial model.

Aggressive marketing — exposure on sites, email newsletters, conferences.

❌ Cons:

The commission may be higher (usually 1.5–5% of the transaction, depending on the size of the property).

A long process of listing and selecting buyers (a lot of preparation, filtering applications).

No guarantee of closing — the market is often not ready to pay the desired price.

Focus on profitability, not on the uniqueness of the property (especially in the mass market).

4. Sale through agencies classic real estate agency

✅ Pros:

1. Ease of entry

Such agencies easily take the property into work, often without complex documentation.

No need to prepare investment memoranda or financial models.

2. Wide local coverage

Good access to small local investors, businessmen.

Especially useful if the hotel is of interest to the domestic market.

3. Flexibility in terms. The agent can adapt to your wishes regarding price, transaction structure, terms.

4. Marketing in the mass segment. Publications on popular sites (for example, OLX, Lamudi, Rumah123, dom.com, Cian, etc.) can provide a certain coverage.

❌ Cons

1. No hotel expertise. The agent does not know how to competently present the operating business: will not explain EBITDA, CapEx, ADR, Occupancy, PIP, etc. Because of this, the price may be underestimated or inappropriately justified.

2. Errors in positioning. Often such agencies sell the hotel as "just a building", missing its value as an operating asset.

3. Weak access to professional investors. Such agencies rarely work with funds, network investors, foreign players. This means a lower probability of a high price or a quick deal.

4. Lack of analytics and structuring. There are no ready-made financial models, data rooms, presentations - buyers will ask for everything themselves, losing interest.

5. Marketing can be harmful

Mass exposure in open sources can alert the franchise, clients, staff, which will affect the occupancy and cost of the business.