Before making the decision to buy a hotel, it’s natural to have quite a few questions – especially if this is your first time investing in a hotel property. Here at Global Alliance Commercial, we have assisted many buyers secure the acquisition of hotel properties, and we want to help you too.

With a vast experience in hotel sales, you can be assured that you are working with a highly qualified hotel brokers. Our well-rounded staff of hotel brokers, legal professionals and accounting personnel are dependable and very skilled in their profession, and we will walk you through each step of the hotel buying process to ensure your experience is as efficient and easy as possible.

Many potential buyers come to us with similar questions about the hotel buying process. Our goal here is to address those common questions, and provide the necessary educational information so that you can feel comfortable making informed decisions. Of course, we are always available to answer any additional questions you may have.

Before you finalize your decision to buy a hotel, please review our list of frequently asked questions below.

To buy a hotel, we recommend buyers have the available funds to cover 20-25% of the hotel’s purchase price. To learn more about hotel down payments contact us.

While not always necessary, operating experience is definitely preferred to secure the financing to buy a hotel. You may also consider hiring an asset management company to manage your hotel for you. If you do choose to go that route, be aware that there will be management fees involved, so you’ll need to make sure the profit margin of your hotel can support that. To learn more about the experience necessary to buy a hotel contact us.

To determine the sale price of a hotel, you must consider several different factors that will affect the price of a hotel. The main factors that determine the price and overall value of a hotel are:

• Income
• Age
• Property condition
• Market saturation
• Location

To know more about hotel pricing factors contact us.

Although some sellers may consider carrying a small portion of the hotel’s purchase price, very few sellers will consider a lease/purchase agreement. Most buyers get financing from a conventional lender.

If you have additional questions about buying a hotel, please contact Global Alliance Commercial. To learn more about your financing options, contact us.

Buying a hotel can be a complex process, whether you’re an experienced investor or a first-time buyer.  Global Alliance Commercial has decades of experience connecting sellers to buyers, and our experienced staff of legal professionals, accounting personnel and hotel brokers navigate the trends of the national hotel market with expert knowledge. If you’re looking to buy a hotel, you can be sure that you’ll be well taken care of here.

Before you buy a hotel, it’s natural to want as much information about hotel sales and individual hotel properties as possible. Our experienced hotel brokers understand the need to do extensive research before investing in a property, and we happily provide comprehensive analysis and detailed information about a property’s characteristics, performance and market.

Additionally, we have many years of experience closing hotel sales. Our staff is familiar with the overall buying process, and we regularly deal with closing companies, lenders, attorneys, franchisors, insurance transfers and more. We will assist you in your hotel transaction and walk with you each step of the way to ensure the sale is compliant with all local and national regulations and your goals and expectations as a buyer are adequately met.

Throughout our years of business in the hotel brokerage industry, we have accumulated a database of thousands of hotel buyers – many of whom return to us each time they want to invest in another hotel property. If you are a new buyer, we are more than happy to assist you throughout the buying process in any way that we can.

Global Alliance Commercial goes above and beyond to ensure a smooth transaction when you a buy a hotel through us. We understand that this process involves a variety of factors, including the property type, the property’s performance, your credit history and your own personal net worth, but we are more than happy to answer any questions you may have about the buying process, while providing expert advice and knowledge of the industry.

We sell hotels – and only hotels – so you can be sure that when you buy a hotel with us, you’re working with experienced professionals who are dedicated to the satisfaction of each and every client we serve.

Global Alliance Commercial offers an extensive selection of hotel listings that include a variety of hotel property types and span a number of different states and Countries. Browse our hotel properties today to buy a hotel, or fill out our contact form for additional information about hotel properties for sale.

How Long Does Closing Take Once My Hotel For Sale Goes Under Contract?

Closing is the actual settlement and transfer of the title from seller to buyer according to the sales contract. The buyer receives the title to the hotel and the seller receives the money. There are numerous requirements and costs that make this a very intricate process.

If your hotel for sale is a mid-sized, mid-tier, limited service, franchised property, closing on a hotel for sale will most likely take 90 days. However, due to the complex nature of the hotel sales closing process, there are many factors that can extend or shorten this timeframe.

The Closing Process for a Hotel for Sale

You may already know that the duration of steps that it takes to close a real estate transaction is known as escrow. Just before escrow closes, the buyer and the seller will both receive a closing statement. This document lists the purchase price and all of the expenses associated with the acquisition of the hotel for sale, along with information about how those expenses will be allocated between the buyer and the seller.

Many of these expenses will have already been paid outside of closing (POC) directly to the service providers as well as other expenses involved with closing. Having the expenses listed on one statement helps keep records for quick and easy referencing when the hotel is sold.

Most sales contracts allow for buyers to make a final inspection and do a walk-through to inspect the hotel property for sale before closing. Use this as an opportunity to make sure that the hotel has been maintained, that the agreed upon repairs have been made, and that no other unplanned changes or alterations have been made to the hotel for sale. Both the seller and buyer should closely inspect the closing statement to know their own contractual responsibilities.

A survey is also typically conducted to make the precise boundaries of the hotel property for sale clear. This provides a layout of the building(s) and significant landmarks and will also show any encroachment from or to adjoining properties.

The seller will need to obtain a payoff statement for any and all liens that lists the amount needed for the property as of the day of closing, including principal, interest, any prepayment penalties and the fee for issuing a certificate of satisfaction. These pre-closing procedures, from surveys to title certificates and mortgage information, all ensure that everything is in order.

The complications that a seller or buyer could run into to obtain the necessary statements and certificates could potentially slow the closing process. Alternatively, the absence of need for some of these procedures (i.e. no mortgage or liens on the hotel for sale) could speed up the process.

There are a lot of things that must be in order to close on a hotel for sale and it is a meticulous and complicated process. It’s crucial that both the buyer and the seller do their part in taking the steps and providing the documents needed for the progression of the sale.

Here at Global Alliance Commercial, we are experienced and knowledgeable, and we will walk you through this process and make it as easy on you as possible.

If you want to sell a hotel but would like more information first, please contact us at Global Alliance Commercial for additional education.

ince the sale of every hotel property is unique, we can’t provide you with an exact timeframe. If you choose to sell a hotel with us, the timing will be based on the following factors:

• Price
• Age
• Property condition and features
• Franchise term remaining
• Price per unit compared to other brands and new construction

To learn more about the factors that affect the timeline of your sale

When you sell a hotel that is a mid-sized, mid-tier, limited service, franchised property, closing typically takes 90 days. However, the closing process can be influenced by a number of unique factors that may either elongate or shorten this timeframe. For more details on what the closing of a hotel entails.

Our standard listing fees are 6% of the purchase price, which are only paid upon closing the sale of your hotel. Creating marketing materials, paying for advertising spots, screening prospects, managing paper flow, traveling to meet with prospects and to show your property, answering calls from prospects well outside the scope of typical business hours and paying administrative support staff are all services that cost you nothing, unless your hotel is sold. When everything’s said and done, if we don’t sell your property, we don’t get paid. Find out more about the costs associated with selling a hotel here.

There are many things you can do to ensure the highest possible offer when you sell a hotel. First, you’ll want to be sure that all hotel income for the past three years is accurately reported and documented with the IRS. If you own a franchise property, make sure all PIP and/or inspection requirements are complete (or near complete). Additionally, keep capital improvement costs separate from regular maintenance on your P&L, and be able to produce a list of those improvements, along with their costs. Finally, clearly disclose any expenses that a buyer will not incur upon acquiring your hotel property. Learn more about getting the highest possible offer here.

Currently, buyers are seriously considering properties listed at approximately 3x room revenue or below for economy and mid-tier limited service brands. Corporate and institutional grade investors are more interested in the CAP rate, which should be at least 10% to get serious consideration. Read more about hotel pricing here.

If you have additional questions about selling a hotel, please contact Global Alliance Commercial

So what can Global Alliance Commercial do, to sell your Hotel, Resort, Motel or Land? The key to the selling are; the Property, the Pricing,the Promoter and the Presentation. Making money or losing money is closely related to Sellers decisions and timing.

By using our marketing platforms, your property will be strategically marketed to reach maximum market exposure. We will guide you through every step of the complex commercial real estate sales process, we are committed to maximizing your benefits, in the specific market conditions regardless of the property age, type and size.

Over the years Global Alliance Commercial has transacted many Hotels on a Specially Designed Confidential Marketing Program as the Seller chose to CONFIDENTIALLY market their Hotel. Global Alliance Commercial welcomes discussion on your disposition preferences.

We will develop a specific marketing plan to ensure that the availability of your property reaches a maximum amount of potential Buyers  with a  stress-free experience and a best possible outcome for you.

Global Alliance Commercial has been selling hotels. Our experience and knowledge of market values across the country is an extremely valuable asset to sellers like you. Additionally, we understand your need for confidentiality, so our hotel brokers operate under a confidentiality-focused strategic marketing plan that will get you the best offers on the market. If you would like to sell a hotel with us, you should know that we specialize in placing properties in the hands of well-qualified buyers with our strategic marketing process.

Our Strategic Marketing Process

The knowledgeable brokers at Global Alliance Commercial understand what drives the value of your hotel and our strategic marketing process enables us to adequately market and sell a hotel while ensuring results.

Presentation. First, we compile a thorough and extensive marketing package. This package will provide important details about your hotel’s features, performance and market.

Visibility. Our hotel listings are consistently listed in top search results for the queries of qualified buyers. When you list your hotel property with Global Alliance Commercial, you can be sure that it will be seen.

Multiplicity. We focus in on hotel and motel buyers by utilizing multiple third party websites to increase the exposure of your hotel property for sale. This expands the market in which your property is seen and increases exposure to more qualified individuals and corporate buyers.

Personal Contact & Email Marketing. We take a proactive approach to selling your hotel. Instead of waiting for buyers to contact us, each of our brokers calls a list of qualified buyers when we list a hotel that meets their requirements. We also contact prospective buyers through email marketing. This process increases the likeliness that your hotel will sell quicker.

Cooperation. We routinely network with other brokerages, which is extremely advantageous for you. Since we are more than willing to cooperate with other hotel brokerages, your hotel property’s profitability and marketability is increased.

Confidentiality. We know how important confidentiality is when you sell a hotel. We will meet with you to discuss your expectations and will not release any sensitive information until we do.

Results. Our premier marketing approach effectively connects buyers and sellers for optimal results on both ends.

With access to thousands of buyers, a streamlined focus on hotel sales, and many years of experience selling hotels, Global Alliance Commercial is the team you want on your side at this time.

If you would like to sell a hotel with Global Alliance Commercial, simply complete the contact form below to receive more information about our selling process and to connect with one of our hotel brokers.

Would you like to discreetly sell your hotel? Worried how employees, managers, suppliers will react to finding out you’re selling? What about your customers; would you book a room when there is a for sale sign in front of the property? Don’t have to worry any longer about your Company Stock dropping.   Stop worrying!

We are here to assist those who want total privacy selling their hotel. Our direct dealings with investors will ensure a smooth, quick and hassle free transaction. Our huge international clientele of Funds, Private Equity and Ultra High Net Worth Individuals is constantly growing.

We will propose your property “Off Market with no address or any specific details”, so technically NOT FOR SALE!

We can also if you wish, list your property with full details.

For more information, please contact us and a member of our team will be in touch shortly.

On your Profit and Loss Statement, make sure to keep the costs of improving the property separate from regular maintenance. This will keep maintenance costs from looking higher than they are (which will devalue the property to the buyer, leading to lower offers). Also, be able to produce a list of these improvements, along with their costs. Improvements work toward higher value when you sell a hotel.

Clearly Disclose Expenses that a Buyer Will Not Incur When You Sell a Hotel. 

A qualified buyer that is in the market to buy a hotel will try to estimate investment and operational costs as conclusively as possible (especially if they have a hotel broker). Any breaks in that amount could possibly increase their offer. Make sure to clearly disclose any fees or expenses they will not be responsible for.

When you decide to sell a hotel, pricing is a meticulous process that only an experienced hotel brokerage should handle. Hotel brokers know the careful art of pricing your hotel property at just the right amount to lure the highest possible offer. Don’t make the mistake of trying to do it yourself or leaving it to a real estate broker who doesn’t specialize in the hospitality industry like hotel brokers do. Hire Global Alliance Commercial. You can trust us to get you the highest possible offer.

How Much Will it Cost to Sell a Hotel?

If you’re trying to sell a hotel, one of the reasons you may be tempted to try and do it yourself, is the cost. It may seem like a way to save money now, but the work that hotel brokers put into their hotel listings is both complex and time consuming. The hassle of doing it yourself is something you’re probably underestimating, while the cost is something you’re most likely overestimating.

Global Alliance Commercial standard fee to sell a hotel is six percent and you only pay this amount upon closing the sale of your hotel. This means that you won’t be burdened by the need to pay until you actually have the funds freed up from the sale.

The truth of the matter is, the best way to sell a hotel is through an established hotel brokerage. It is the best use of your time and money. Don’t let the six percent dissuade you – many different things factor into that cost. Global Alliance Commercial put in a lot of work to market your hotel well and give it lots of exposure for potential buyers.

What We Do to Sell a Hotel

Creating Marketing Materials

Global Alliance Commercial knows the importance of marketing your property well. It takes time, money, resources, and requires a professional presentation. If someone is thinking about buying a hotel, the marketing tools are the first impression. No one wants to spend that kind of money on a hotel that hasn’t been managed well.

Paying for Advertising Spots

Exposure is crucial if you want to sell a hotel. One of the greatest advantages of hiring a hotel brokerage is that they know how to get hotel listings in front of the right people.  Global Alliance Commercial has five decades of experience that gives us the ability to know how and where to advertise hotels for sale.

Screening Prospects

Not only does Global Alliance Commercial have an extensive database of potential buyers, we also have a screening process to set apart qualified buyers before connecting them with listings that match their interest.

Showing Property

When qualified buyers express interest, your hotel broker will be the one to meet them at the hotel property for sale, show them the property and answer their questions.

Administrative Work

Selling a hotel requires a lot of communication and documentation, such as emails, phone calls, and paperwork. Global Alliance Commercial will answer calls well outside of traditional business hours to ensure the success of your hotel sale. We have an entire administrative support staff to field inquiries and handle the preliminary and behind-the-scenes work so that our hotel brokers can remain organized and have the resources needed to sell your property.

If you’re interested in learning more about the costs to sell a hotel with Global Alliance Commercial, contact us today to speak with a hotel broker.