Hospitality Asset Sales for Hotels, Restaurants and More

Questions to Answer Before You Sell

What Questions are Sophisticated Buyers Asking?

Before you market your hotel or restaurant asset for sale, you should already know the answers to the most important questions. Questions that any sophisticated buyer will ask. Knowing the answers, and positioning your asset before listing will stop surprises during the buyer’s due diligence process. It will also provide for a smooth, trouble free transaction, and help you maximize the sales price and return on your investment.

Owners learn more about their hospitality business during the sale process than ever before. Don’t get surprised by your buyer’s due diligence. Prepare in advance.

Management and Operations – Is your property operated at peak efficiency and customer satisfaction?

Management and operations are the foundation that supports top line revenue. They are the engine that delivers product quality and profit through customer service delivery and efficient hotel and restaurant operations.

  • Do you have the right Management Company operating your property?
  • The right management team?
  • Is product delivery and customer satisfaction at the high end of the scale?
  • Are labor costs in line?
  • Is the building operated and maintained ?
  • Are there cost savings opportunities?

Improving customer satisfaction, and operating at peak cost efficiency contribute to top line revenue, improve operating profit, and boost property value.

Market Position and Branding – Is your property maximizing its revenue potential in its market?

Hotel and restaurant asset pricing is all about value, and nothing drives asset value more than top line revenues.

  • How is your property positioned in its competitive set?
  • Is the property capturing more than its market share of rate, occupancy, and sales?
  • Are there opportunities to improve market position or economics through improved selling, marketing, re-branding, renovation, or re-development?
  • Are there barriers to entry in your property’s market?
  • How stable is your property’s revenue stream?

It is critical to know both the opportunities and the risks that the property faces in its competitive market, and the associated impacts on revenues.

Why are you selling this asset at this particular time?

You should know this answer even before starting work on answering any other questions.

  • Is it time to cash out on a top performing asset?
  • Do you need to adjust portfolio exposure in particular markets or brands?
  • Are you focusing on other development opportunities?
  • Do you lack the resources necessary to maintain the property?
  • Are you looking for an investment or management partner?

Knowing your reasons to sell will make it easier to check sale offers, and to respond to due diligence questions from potential buyers.

Asset Condition – Is your property well maintained and in good condition? 

Property condition is of equal importance to customer service in supporting hospitality product delivery. The friendliest staff in the world cannot make up for a broken down mattress, worn out carpet, or non-functional air-conditioning.

  • Will the sale of the property trigger a Property Improvement Plan (“PIP”) rule by the brand?
  • How extensive will the PIP be?
  • Are there any deferred maintenance or deferred capital issues?
  • Unmet regulatory or inspection requirements for elevators, fire and life safety systems, ADA, VGBA, EPA, OSHA, etc.?
  • What will re-branding opportunities need in renovation and CapEx costs?

A well-maintained asset contributes to property reputation and repeat business, improves operational efficiency, and lowers the risk of equipment failures and service disruption. Well maintained properties also generally enjoy lower R&M and capital costs over the long term.

Exit Strategy Consulting – Why are you selling this asset at this particular time?

A sound exit strategy, put in place and then reset to current conditions, will greatly increase the likelihood that when you exit your hotel investment it will be on the most favorable terms available, and that your return during the holding period will be optimum for the circumstances. If you model the likely income and realistically project the amount of debt that can be supported for at least the next five years, you will quickly pinpoint opportunities and roadblocks.

Exit Strategy Consulting – Why are you selling this asset at this particular time?

A sound exit strategy, put in place and then reset to current conditions, will greatly increase the likelihood that when you exit your hotel investment it will be on the most favorable terms available, and that your return during the holding period will be optimum for the circumstances. If you model the likely income and realistically project the amount of debt that can be supported for at least the next five years, you will quickly pinpoint opportunities and roadblocks.

Developing an objective and complete evaluation of property value can be a daunting task for even the most sophisticated owner.

Allow Cayuga Hospitality Consultants to put together a team of experts to help you answer these questions and more when it comes to selling your hotel or restaurant asset.

These guidelines were a cumulative effort by Cayuga Hospitality Consultant’s Asset Management and Owners Advisory Services consultants.

Initial Discovery Process

A Senior Cayuga Hospitality Consultant will review property strengths, weaknesses, opportunities and threats. Meetings with management to overview findings is followed by a detailed report with areas of focus and an initial estimate of potential valuation. Cayuga Hospitality Consultants fee to be negotiated.

In-Depth Review & Analysis

Our team of Cayuga Hospitality Consultants are experts in their areas of focus and complete an onsite analysis, from the perspective of a customer. We review internal documents, benchmark gaps vs. industry standards, conduct management/staff interviews and competitor site visits. A final report is provided with key findings, action plans, projected investment and ROI estimate. Scope and Cayuga Hospitality Consultants fee to be negotiated.

Ongoing Resources & Support

Our highly skilled Cayuga Hospitality Consultants provide specialty resources to assist with plan execution and also offer experienced coaching to ensure traction and accountability towards milestone accomplishments. Scope and Cayuga Hospitality Consultants fee to be negotiated.

Meet Our Preparing Your Asset for Sale Consultants

Andrew Huzyk

IT Systems Design & Technology

View Profile

Debbie Miller

Digital Marketing and Social Media

View Profile

Jeff Hope

Finance, Operations & Risk Management

View Profile

John Berndt

Operations & Asset Management

View Profile

Greg Riehle

Legal, Risk Management, Arbitration

View Profile

Janet Eason

Marketing and Branding

View Profile

Haydee Cruz

Digital Marketing and Market Analysis

View Profile

Tom Lambrecht

Debt Restructuring, Loan Packaging

View Profile

Ted Torres

Development & Construction Management

View Profile

Jim Lopolito

Restaurant, Catering & Country Club

View Profile

Dan Voellm

Asset Management & Valuations

View Profile

Larry Spelts

Hotel Development & Repositioning

View Profile

Perry Smith

Restaurant & Club Operations, PR, Branding

View Profile

Ken Widmaier

Asset Mgmt, Operations, LOI/HMA Review

View Profile

Walter O'Connell

Hotel Valuation & Cost Segregation

View Profile

Shirley Whelan

F&B Concept Development & Management

View Profile

James Miles

Independent Resort Ops & Development

View Profile

Charis Atwood

FF&E Project Planning and Management

View Profile

Chuck Kelley

Positioning & Asset Operations

View Profile

Katherine Moulton

Mediation and Dispute Resolution

View Profile

Juliette Gust

Ethics, Compliance, Anti-Fraud

View Profile

Stephanie Smith

Hotel Digital Marketing & Social Media

View Profile

Scott Brown

Audio Visual Services & Infrastructure

View Profile

Chuck Simikian

HR Consultant, Trainer, Interim Director

View Profile

Stewart Kiely

Design/Project Management/Sustainability

View Profile

Ken Edwards

Receivership, Asset Management, Training

View Profile

Cara Federici

Branding, Marketing & Feasibility

View Profile

Stacy Moore

Foodservice Concepts & Strategies

View Profile

Kevin Doyle

Fraud Investigations & Prevention

View Profile

Rick Blackburn

Sales & Growth Strategies

View Profile

James Samson

Food, Beverage, and Restaurants

View Profile

Haydn Kramer

Hotel Sales and Global Sales

View Profile

Stephen Lipinski

Restaurant Profitability, Expert Witness

View Profile

Michael Pleninger

Hotel Development & Management

View Profile

Joseph Cozza

Catering Sales & Event Operations

View Profile

Alan Someck

Expert Witness, Foodservice Operations

View Profile

Frank Schuetzendorf

Food & Beverage Concept Development

View Profile

Eric Rubino

Acquisitions/Investment/Deal Structuring

View Profile

Mandy Murry

Independent Hotel Coaching

View Profile

Joanne Richardson

HVAC, Digital Bldg Tech, ESM Strategies

View Profile

Charles Oswald

Asset Management, Acquisition Strategies

View Profile

Javier Leon

Engineering, MEP Review, CapEx Planning

View Profile

Connor Vanderholm

Total Revenue Management & Task Force

View Profile

Alan Orlob

Hotel Security & Threat Mitigation

View Profile

Dr. Chekitan Dev

Hospitality Branding and Marketing

View Profile

Jay Landfair

Asset Management/PIP/Project Management

View Profile

Simon Turner

Expert Witness, Asset Mgmt, Transactions

View Profile

Jon Peck

Acquisition Advisory & Asset Management

View Profile

Thomas Cleary

Insurance, Risk Management, Workers Comp

View Profile

Bill Callnin

Casino Consulting Services

View Profile

Don Farrell

Sales, Service & Leadership Training

View Profile

Susan Barry

Commercial Strategy

View Profile

Fred Neuville

Chef, Restaurateur, Operations

View Profile

Sean Skellie

Hotel Development & Marketing Analysis

View Profile

Preston Rideout

Nightclub and Dram Shop Expert

View Profile

Simon Fricker

Luxury Boutique Hotelier & Restaurateur

View Profile

Jeff Foster

Hospitality, Theme Parks, Zoological

View Profile

Peter Van Allen

Non-Rooms and Rooms Pricing Strategies

View Profile

Gary Isenberg

Hotel Owner Advocacy & Development

View Profile

Cory Falter

Supplier and Hotel B2B Sales & Marketing

View Profile

Jennifer Dohrmann-Alpert

Market & Financial Feasibility Studies

View Profile

Sean Flakelar

Luxury Boutique Resort & Restaurant Ops.

View Profile

Bill Carroll, Ph. D.

Revenue, Pricing, Marketing

View Profile

Enquire Now

Trusted By