The hospitality sector is a challenging one, so if you’re thinking of selling your hotel, consider these top tips.
Business and leisure travel have been a hugely important part of many of our lives, which has resulted in the hotel industry prospering throughout the UK. From businessmen and women staying in hotels after travelling to important meetings, to families taking a well-earned break, there is always a hotel waiting for them at the end of the day.
Similarly, the notion of a “staycation” is still a popular one, with many people opting to remain in the UK for their relaxing escape.
It’s for these reasons that selling a hotel could be an exciting prospect. It is a demanding yet rewarding industry that many buyers would be keen to be involved in. If you’re ready to hand over the reins, you can bet that you can find a good deal with the right preparation.
So, if you’re hoping to sell your hotel business, it’s important you know what you’re doing. We offer some advice to help you get started.
In this guide, we will help you with:
- Knowing when to sell your business
- Creating buyer interest
- Valuing your business
- Approaching the sale
Understanding the best time to sell your business
No industry comes without its challenges, especially the hospitality sector. You might have decided that it’s no longer for you, or you have found a new opportunity. If this is the case, you should consider when the right time to sell your business is.
Selling your hotel business could depend heavily on its performance. For instance, putting your hotel up for sale in its peak time could play an important role in the selling process.
Selling your hotel when occupancy rates are high and cash flow is good can mean you get a better price. If you’re experiencing a challenging time with a slump in performance, it might not be in your best interest to put it on the market straight away.
Of course, there might be many other reasons why you want to sell your hotel. You should first carefully assess the market and decide whether it is the most efficient time for your business.
Creating buyer interest
Your hotel no doubt already has a lot going for it, but take some time to consider its current state. When it comes to generating buyer interest, you should make sure your hotel looks as presentable as possible. This includes cosmetically and financially.
1. Organise your finances
Organising the finances of your hotel is crucial, as it can give a potential buyer a better insight of what they’re getting involved in. Ensure all paperwork and records are in order and ready to present when the time comes.
2. Fix any problems
If you know your hotel could do with a fresh lick of paint, or there are some minor repairs, it’s in your interest to sort them before buyers come looking. Improvements of this kind are quick and inexpensive, but can have a big impact on the overall appearance of your hotel.
3. Emphasise the positive
If you know your hotel has some features that make it stand out, be sure to make sure these are made known to buyers. This includes advertising them on social media and making sure the staff know. For example, special offers on room rates or beautiful décor in the dining room.
Value your hotel business
Getting a valuation of your hotel before selling can be incredibly helpful in making sure you know what your hotel is worth. This is particularly important if the business is experiencing success, or if you’ve just spent a lot of time doing up the property.
If you’re selling your hotel, a valuation can be handy to get a full picture of your business’ worth. Your hotel will be valued based on factors like room prices, occupancies, possible earnings and inventory.
How to approach the sale of your hotel
No matter how much research or preparation you may have done when thinking about selling your hotel, you should consider working with an expert. Trying to sell a hotel isn’t easy, and you’ll want to make sure you don’t miss anything.
1. Don’t do it by yourself
Working with an online business agent is one of the easiest and quickest ways to sell your business; if you find the right one. Many business owners will avoid this route as they believe it is expensive. With Bizdaq, we can offer all the same services as a traditional agent but without the cost or hassle.
We can offer support, advertising and the chance to manage your own sale.
2. Utilise online services
Selling a business can be a complicated process, but online services can make it much more straightforward. Online business listings are a great way to advertise your sale and show your business at its best. Bizdaq have over 100,000 registered active buyers, but we also work with major listing sites like Zoopla, Daltons and Prime Location.
3. Bespoke solutions to sell your business
Hotels are a specialised business and you might need a helping hand to securing the right deal. Working with an expert business agent can ensure you have access to the right support, especially when it comes to sale negotiations and legal help.
If you’re ready to move on, Bizdaq are here waiting to help you sell your business faster and easier.
Book a consultation with us today.
Posted on April 10, 2019 | selling, sell a business fast, sell a business, hospitality, hotels, how to sell a business, how to, help me sell