Travel forecasts for the summer season are all very favorable as Americans are anxious to get away and we are all hoping for a quick recovery for the hospitality industry after the economic shutdowns last year. Some hotels in drive-to leisure markets are already having a record Spring. According to STR, “nearly half of all U.S. hotel markets performed at “recovery” or “peak” levels during the week of April 10”. https://www.costar.com/article/2037362238/us-hotel-industry-about-halfway-to-recovery
Despite these encouraging signs, hotel values are down from their peak in 2018. According to HVS, hotel values have predominantly declined between 15% and 30% in 2020 from 2017 – 2019 values. https://www.hvs.com/article/8920-covid-19s-impact-on-values
Values Have Predominantly Declined Between 15% and 30%
There are many strategic reasons why now may be a good time to sell one of your hotels. But, if you are going to wait for a year or two for hotel market values to increase, you’ll want to start preparing now. There is one often overlooked way to increase your hotel asset value: clear and concise financial statements
Part of your hotel’s value is its current and accurate financials and readily available reports, as well as the revenue and profits they convey. These are essential when it comes time to sell. Buyers will expect detailed, timely, and readily available information. And of course, when you have instant access to your financial and operational data, you can make more informed business decisions. Even for on-going operations you need to analyze profitability and benchmark expenses.
The right accounting and business intelligence software is extremely important. I would even say it is as important as having the right brand, though far less expensive. An accounting software that is designed for hospitality will offer unique functionality and time-savings not available in generic options. Plus, modern E.R.P. (enterprise resource planning) software has advanced automations that can save time and close your books faster.
According to the 2021 Lodging Technology Study: Reimaging Hospitality, 78% of respondents rank improving analytics as very or extremely important. Additionally, 40% of respondents feel that they are significantly lagging or somewhat lagging compared to competitors in analytics maturity.
Hotel Investor Apps ERP & Accounting software is the ONLY cloud E.R.P. on the market designed for hotels. Consider how the ease-of-use and built-in time savings can increase your back-office staff efficiency, giving them more time to focus on important tasks such as managing costs and cash. As you focus on the road to recovery and your hotel’s profitability, consider how powerful it would be to have all your financial data, budgets, business intelligence, payroll, PMS, POS, banking, and other software fully integrated on one platform.
Whether you plan to operate long term or exit soon, a robust hotel accounting and business intelligence suite will pay dividends to your bottom line and your asset value.