Selling a hotel? Here's how to make it attractive and hold its value

Good preparation pays off more - financially and practically

Selling a hotel is not a sprint, but a strategic process. Just like running a hotel, the rule is: those who are well prepared have the greatest chance of success. VDW Hotelmakelaars guides entrepreneurs through this process on a daily basis. Co-owner Ingmar Bokma and Hotel Real Estate Specialist Jeroen Pontenagel share their practical insights, complemented by a clear step-by-step plan to get your hotel ready for sale.

1. What do you want to sell - and why?

"One of the first questions we ask is: what do you actually want to sell?" says Bokma. "Just the operation, the property, or both?" That choice has a big impact on the approach as well as the final yield. "Sometimes letting is an intermediate step that is more fiscally attractive or offers more security towards retirement. Collateral can be provided from the tenant that allows you to recover lost rent or damage to the property. According to
Pontenagel it is also important to have your personal goals in focus. Do you want to retire? Get maximum value from sales? Or are you mainly looking for peace and security? Those answers determine the route.

2. Make a realistic analysis of your hotel

Making your hotel attractive starts with insight:

Personnel & operations: Is your team stable? Are there any ongoing commitments (such as linen contracts, leases or franchise deals) that could affect the proposed sale?

Business economics: What is your profitability? Are investments needed? Is the hotel running efficiently or can you optimise?

Legal: Are there any pitfalls in your lease or long lease? Are all permits up to date? What is the legal form of your business - and is it still appropriate? Pontenagel: "The legal form might have been fine 30 years ago, but with a view to a proposed sale, it no longer has to be. The tax implications can be huge. The cliché is true: if you do what you always did, you get what you always got." So careful analysis is necessary.

Sustainability: What is your energy label? Have improvement measures been taken or planned, and what do they deliver?

"A buyer does not want surprises," says Pontenagel. "Don't enter into new multi-year contracts just before selling. Make sure everything is clear."

3. Value: more than just numbers

The value of your hotel is about hard data as well as less tangible factors such as appearance and potential. Have a professional valuation done by a specialised hotel broker. "Sometimes we advise: don't sell now," says Pontenagel. "Inefficient management or poorly maintained property can depress the value. Then optimisation is smarter." Bokma adds: "A rotten window frame on entry? Then a buyer immediately thinks there is more wrong. Maintenance and appearance matter."

4. Draw up your sales strategy

Are you selling to a family member, employee (MBO), external starter (MBI) or strategic party? Do you want to sell discreetly or through the market? Determine this based on your goals and the type of buyer. And: work with a good information memorandum (IM) that provides clarity without fuss.

5. Negotiate from strength

When you know what you want and what your hotel is worth, you negotiate stronger. But don't lose sight of the end goal. "It's about a workable deal for both parties," says Bokma. "Not always perfect, but realistic."

6. Finalise the transaction properly

A deal is more than the deed of sale. Consider letters of intent (LOI), transfer of staff, permits and practicalities. "Everything has to be right. No loose ends," says Pontenagel.

Conclusion

A successful sale does not start with the broker, but with yourself. With the right preparation, you can make your hotel more valuable and attractive. VDW Hotel brokers helps hoteliers do this with customised and realistic advice. "We don't want to present a muddled story," says Bokma. "Everything must be clear - for the buyer and for you as an entrepreneur. We offer a no-obligation and discreet introductory meeting. No sales pressure, but a clear track record - tailor-made for your hotel."