Owning an hotel has always been viewed as a great way to generate income from the land you own, especially in a country like Thailand. However, the hotel business can be very demanding, and many circumstances may push you to sell your hotel and move on to something new. Selling an hotel is not always easy and you may need to do a little bit of extra work if you want to get a significant return on your investment and sell as fast as possible. Here are four tips that’ll help you sell your hotel faster.
Know When to Sell
The key to selling a hotel fast is knowing when to sell. You don’t want to wait until you can no longer afford to run the property. The solution is to sell the property when the market for such properties is hot so that you can sell quickly and earn as much as possible from the sale.
The ideal time to sell is when occupancy is maximised and cash flow is high so that you have excellent numbers to show to potential buyers. You want to have a legitimate reason for selling too so that buyers will make an offer without being suspicious of the property.
Prepare the Hotel for Sale
While updating the décor or thoroughly cleaning it is necessary to make it as attractive as possible to potential buyers, this isn’t all you need to do to prep the place for sale. For example, you need to fix cosmetic problems and all the little broken things. You also need to organise your finances. Have up to date financial reports tracking expenditures, costs, overheads, room rates and occupancy rates. Make sure you are able to list any future bookings you have. Know the value your current staff bring to the business, and how the services you offer bring value to the business. And know your business’s valuation. Understand which records may be asked for during the sale and gather them together now.
Work with Specialists
If you’re working with advisors to sell the hotel, make certain you’re working with people who have a proven track record in the hospitality industry. For example, if you need to update the hotel to make it attractive to investors, work with a Bangkok interior designer who specialises in hospitality interior design.
Your real estate agent and financial advisors should have experience with these types of transactions. For example, a real estate agent who specialises in the hospitality industry will create a marketing strategy that will sell a property like yours fast. Ask the real estate agent what experience they have, which properties they’ve sold, and the prices they’ve received for such properties.
Have an Exit Plan
Hotel sellers should have an exit plan. Prepare a detailed plan on how you’d hand over control of the facility after the money has changed hands. Who will manage the day to day operations when the property is sold? How long will the prior operator be available for questions? Having a clear exit plan can speed up the process of selling, since this doesn’t need to be negotiated. It prevents buyers from reducing the price because they think they have to do more work than would actually be required.
International tourism is on the rise, and this is a major boon to the hospitality business. Take the right steps now to cash in on this boom so that you can sell your hotel fast for the most money.
