18/06/2025
Selling a hotel involves several steps that require careful planning, preparation, and knowledge of the market. This is our step-by-step guide to help you through the process.
Arrange for a valuation by a specialist hotel broker of your hotel. The visit will involve reviewing financial statements, key performance statistics, location, condition, and any unique selling points (USPs) your hotel has. Hiring an experienced hotel broker will help you navigate the process, particularly if you're unfamiliar with current trends. They will provide you with marketing advice and an appropriate guide price.
Serious buyers will require visibility of the last three years hotel's profit and loss statements to understand revenue performance and operating overheads. Ensure your financial records are in order and as up-to-date as possible.
Your hotel should ideally be in turnkey condition. Undertake any essential repairs and improvements to enhance both the value and the buyer appeal. Well-presented accommodation can make a huge difference in setting the right tone when buyers view the premises.
Consider appointing an appropriate licensed commercial property solicitor who is experienced and can assist with contracts, employment law, and any other issues that may arise. It's essential that all legal aspects are covered to ensure transparency. Fleurets have a list of solicitors who specialise in these type of commercial property transactions.
Buyers will want to know everything about the hotel, from finances to operations. Provide your broker with the full picture, including detailed trading information, tax returns, staff details, lease agreements, and any other relevant documents. It is essential that all service and maintenance records are up to date. Ensure you have a current EPC.
Work with your broker who will create professional marketing material and an online listing, which includes high-quality images, descriptions of your hotel's features, location, amenities, and potential for growth. Consider obtaining professional photographs and floor plans.
Fleurets will reach out directly to both private and corporate investors, hotel chains, and other business owners who might be interested in buying your hotel.
We have a network of potential buyers that can be contacted directly should your preference be for a confidential approach.
Your hotel will be listed on our dedicated website along with Rightmove, if you so wish.
We will negotiate not only the sale price but also the terms of the transaction, any leases, and the transition period.
Once a deal has been agreed, Fleurets will send out a memorandum of sale detailing the terms of the transaction to all parties concerned.
The buyer and their legal team will conduct full due diligence on your hotel. This means they will thoroughly investigate all aspects of your property and business, from finances to operational practices. You should be prepared for this and cooperate fully in order to achieve a smooth sales process.
Once an agreement is reached, work with your solicitor to draft a sales agreement. We will liaise with all parties to ensure transparency and maintain momentum in the legal process.
Depending on the terms of the sale, you will be required to assist in the transition of hotel operations to the new owner, including introducing them to staff, suppliers, and other stakeholders. Employees, suppliers, and customers should ideally be informed about the change in ownership to ensure a smooth transition.
This process includes transferring the legal ownership of the hotel, its assets, and any necessary permits or licenses.
It is advisable to consult with a tax advisor to understand the tax implications of selling your hotel and any capital gains taxes you may owe.
Are you selling for personal, financial, or strategic reasons? Understanding your motivation can help you decide on the best approach and timing for selling.
The best time to sell may depend on market conditions, such as buyer demand, the state of the economy, or seasonality.
Selling a hotel is a significant business decision, so it's crucial to consider whether an open market approach or a confidential strategy is most appropriate to avoid disturbing operations and/or impacting the business's reputation.
By following these steps, you can ensure that the sale of your hotel goes smoothly and that you get the best possible price for your property.
Fleurets has the largest team of Chartered Surveyors in the UK dedicated to the valuation of hospitality businesses and leisure property.
With a highly experienced team we are able to provide quality advice to owners, buyers, funders and other professional advisors. We provide in-depth analysis, research, and detailed valuation reports. We provide the advice you can rely on.
Contact Fleurets today for a free and confidential conversation. We are here to help!