Broker Opinion of Value

A Broker Opinion of Value (BOV) is an opinion of price a hotel may sell for in a given market. It is done by an experienced hotel broker, and is not a certified appraisal of the market value of the property. Many owners we speak with, do not have an accurate idea of how much their hotel is worth. It is critical to understand this, because many decisions an owner will encounter, should keep in mind the value of their hotel. For example, if you are considering undertaking an upcoming Property Improvement Plan (PIP), does it make sense to do it yourself, or to sell the hotel and let the Buyer undertake the project? It’s not just a matter of the cost of the PIP, but how the disruption to your business during the construction period will impact your sales. Sometimes the money you invest in a PIP, will not be recoverable on a 1-to-1 basis when you sell. We also encounter owners who have a lot of equity in a hotel, and could be investing that money to buy a larger/nicer hotel that could earn more money. Speaking with an experienced hotel broker helps an owner determine whether to buy, hold, or sell their hotel. Hotel Brokers America will provide a complimentary BOV for a hotel owner who is considering the sale of their hotel.

Hotel Investment Sales

The sale of a hotel is a collaborative effort between the Seller and a Broker. A good hotel broker will take the time to review the P&Ls and ask appropriate questions. At Hotel Brokers America, we spend a lot of time to present your hotel with the highest possible Net Operating Income (NOI). This allows us to list your hotel at the highest possible sales price. We take pride in creating wealth for our clients for future hotel investments, for retirement, or for other investment or personal needs. We analyze how the hotel is faring with the comp set, and work closely with the owner to uncover why a hotel may be underperforming or overperforming the comp set. We strive to understand the market and what are the current and future demand drivers. An experienced hotel broker will ask tough questions, because establishing a strong and honest relationship with the client is essential for the success of a sale. It is also important for a hotel broker to develop a trustworthy relationship with the Buyer. This is accomplished by understanding their budget; their investment objectives and goals; and their strategy to improve the hotel’s performance. We take the time (especially with first time hoteliers) to educate them about each deal, and present the hotel in the best light possible. We find ways to convince them of the ‘upside potential’ of the deal, so they feel comfortable and confident to make an investment. Because of his hard work, diligence, and sales experience working with different buyers, Neville has a list-to-close ratio of +90%, which is extremely difficult to achieve. We are not in the business to ‘overpromise and underdeliver’, like many brokers in the market, who will say whatever you want to hear, just to get the listing. Our objective is to be honest upfront, so you can achieve your goal of the sale of your hotel. Unlike others, we don’t want to waste your time by listing at an unrealistic price, only to pressure you later to lower your price. A good and honest broker will price the hotel correctly, right from the start.

Advisory Services

Hotel Brokers America speaks with hotel owners on a daily basis. We understand the rewards of the hospitality business, as well as, the challenges. Rising cost of supplies, improvements, and labor affect almost every hotelier’s bottom-line profit. Finding competent and professional staff in all markets has been a challenge. We hear from many owners, how they are having to work more at their hotels, and yet the profits have gone lower and lower each year. Sometimes, retiring may be the answer; or perhaps selling and moving to a different market or type of hotel with better prospects; or even investing in another commercial product type. Speaking with a professional hotel broker can allow you to air your concerns, and hear what options may be available. Sometimes it may make sense to hold on to your hotel; other times it may make sense for you to sell your hotel; or sometimes a ‘cash out refinancing’ may be the option, so you can reinvest in your hotel and reposition it. Through our lending partners, we have helped hoteliers obtain financing for acquisitions and refinancing. These can be through SBA, conventional financing, CMBS, bridge loans, and other financing, depending on the circumstances.  

We can advise on Operational Issues; Strategic Planning and Exit Strategies; Capital Expenditures for Property Improvement Plans, and whether they are likely to result in expected Return on Investment (ROI); Branding & Rebranding selections; referrals to Lenders & Management Companies; Acquisition Due Diligence (Buy Side Broker); Site Selection for New Builds; etc.    

We look forward to the opportunity to serve you. Please use our ‘Contact Us’ tab to reach out.