What Every Hotel Owner Needs to Know Before Selling

What Every Hotel Owner Needs to Know Before Selling

If you’ve been Googling “sell my hotel,” chances are something big is on your mind. Maybe you’re thinking about retirement. Maybe ano

ther opportunity has caught your eye. Or maybe… you’re just done. Whatever the reason, this isn’t a decision you take lightly — and that’s a good thing.

Selling a hotel isn’t just about offloading real estate. You’re parting with years (maybe decades) of hard work, reputation, and resilience. This guide is here to help you walk away proud — and with top dollar in your pocket.

1. Understand Where You Stand — Market + Money

Before you even think about listing, ask yourself this: “If I were a buyer, would I pay what I’m asking?”

Take an honest look at your local market. Is your hotel holding its own? How are your occupancy rates, ADR, and RevPAR stacking up against others nearby?

I once worked with a hotelier in upstate New York who was confident their property could fetch $6 million. After a deep dive into the numbers and market trends, we landed on a smarter strategy — some operational tweaks, a few cosmetic upgrades, and they walked away with $5.5 million in a clean deal.

Financially, make sure your P&Ls, tax returns (at least 3 years), and occupancy data are all cleaned up and ready. Clarity builds trust.

2. Be the Seller Buyers Love

Good buyers dig deep. The more prepared you are, the faster they move — and the more seriously they take your listing.

Gather:

Franchise agreements

Lease or deed

Business licenses and permits

Equipment lists

Payroll and staffing info

Maintenance logs

Pro Tip: Create a “buyer folder” with all your info organized. It’s like staging your financial house — and it makes you look sharp.

3. Make It Shine (Without Breaking the Bank)

Buyers don’t need marble floors — they just need to see care. Fresh paint, clean rooms, tidy landscaping, and working signage go a long way.

I had one seller spend $30k refreshing their 20-room coastal inn. In under two months, they had a bidding war and closed $350k above their initial estimate. Sometimes small touches unlock big dollars.

4. Don’t Let Ego Sink the Deal

Here’s the hard truth: many deals die not because of money — but because sellers wait too long, hide issues, or think their hotel is worth more than it is.

Avoid:

Emotional pricing

Withholding repair needs

Mixing personal expenses with business books

Waiting until the last minute to prep

A client of mine once insisted everything was “perfect” — until due diligence revealed back taxes and a needed roof repair. The buyer backed out. Always lead with transparency.

5. Think Beyond Just Price

A good deal is about more than a fat check. How the deal is structured can impact your taxes, timeline, and peace of mind.

Deal types:

All-cash (fastest, but sometimes lower)

Seller financing (get more, with risk)

Earn-outs (performance-based pay)

Leasebacks (keep the land, sell the ops)

There was this seller who used a 20% seller-financed note and closed for 18% more than expected. Why? They stayed open-minded — and that made the buyer more confident.

Final Thought

If “sell my hotel” has been on your mind, don’t wait for burnout. Don’t wait for the market to tell you it’s too late.

Start prepping now. Get clear on your numbers. Clean up your ops. And talk to someone who’s helped others exit smoothly.

You built something valuable. Now it’s time to exit like a pro — with clarity, control, and confidence.

Anthony Rivas

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