BreakThru Realty

Sell a Hotel or Motel in South Florida

Hotels, motels and inns are sold with their real estate in most cases, so a hotel sale is a business sale and a commercial property sale at the same time. The brand, the property improvement plan, the operating history and the building all come into the price.

Request a Confidential Business Valuation · (786) 914-1017

How Hotels Are Valued

Buyers and lenders look at occupancy, average daily rate and revenue per available room over at least three years, then at net operating income after management and a reserve for furniture, fixtures and equipment. The building's condition, the land and the location set the floor; the operating history sets the multiple.

The Franchise and the PIP

A flagged hotel carries a franchise agreement with a remaining term, and a sale usually triggers a property improvement plan the buyer has to fund. The franchisor must approve the buyer. The size of the PIP can move the price by more than a year of profit, so we get it quoted early and price the hotel around it.

Financing a Hotel Purchase

Hotel buyers use SBA 7(a) and 504 loans, conventional hospitality lenders and private capital. Lenders will want the STR or occupancy reports, the tax returns, the franchise agreement and the property condition report. Coastal properties add insurance and flood costs that buyers now examine closely.

Selling Quietly

Hotel staff and guests react to a rumoured sale like any other business. The property is marketed as a profile with its key numbers, and full information goes only to buyers under an NDA with proof of funds.

Request a Confidential Business Valuation

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

What is my hotel worth?
It depends on the net operating income, the brand, the property improvement plan and the real estate. A confidential valuation reviews all of them and gives you a range.
Can I sell my motel without the land?
Yes, if you lease the property to the buyer on terms long enough for their financing. Most hotels and motels are sold with the real estate, which widens the pool of buyers and lenders.
Do franchise hotels take longer to sell?
Usually, because the franchisor has to approve the buyer and the property improvement plan has to be agreed. Starting the franchisor conversation early keeps it off the critical path.
What does a business broker charge?
Brokers selling small businesses usually charge a success fee paid from the proceeds at closing, commonly quoted in the market at around ten percent of the price, often with a minimum fee; larger sales are usually priced on a sliding scale. BreakThru's fee is set out in writing in the listing agreement before you sign anything, and the valuation costs nothing.

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