A hotel is priced per key, and defended on RevPAR.
Flag, contract term and the state of the rooms decide who can bid. We find the ones who can, before anything is advertised.
Buyers for hotels are matched from a private register, not a listings page.
Every buyer states their class, price band and geography before they are added. When your asset fits, they hear about it the same week — before it is advertised anywhere.
Price per key, tested against RevPAR and the flag's remaining term
Per key is how the market quotes, but it is a shorthand for the operating result. Two properties at the same key count trade far apart when one runs occupancy in the seventies at a rate the market accepts and the other does not. The franchise agreement is the third variable and often the loudest: a required property improvement plan is a real number a buyer will subtract, so it is better to price it in than to discover it in diligence.
What actually happens, in order.
- 01Value it before anyone knows it is for salePer key, then tested against your actual operating result and the flag's terms. You see the subtractions before a buyer does.
- 02Match against the registerFranchise transfer conditions rule out a good share of interested parties. Fit is checked before a name is given, and financials release on a signed NDA.
- 03Sequence the flag conversationThe brand's approval is on the critical path. It is started early rather than discovered late, which is where hotel deals usually die.
Have these ready and you save a month.
- Occupancy, ADR and RevPAR by month for three years, against the competitive set
- Franchise agreement: remaining term, transfer conditions, and any outstanding PIP
- Capital history — roof, HVAC, elevators — and what is genuinely deferred
- Labour model, and whether it survives a change of owner
Ninety to a hundred and eighty days. Franchise approval and any PIP negotiation are the schedule, more than financing is.
My franchise wants a PIP. Should I do it before selling?
Usually not. You rarely recover the full cost in price, and a buyer with their own renovation plans may not want your version of it. It is nearly always better to price it honestly and let the buyer scope it.
Start with the number. Decide after.
A confidential valuation commits you to nothing. No listing agreement, no sign, and no one hears about it from us.