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As a hotel broker, one point of contention I see in many deals is the arrival of the franchise property improvement plan, a.k.a. the PIP. Hotel franchise companies often take advantage of the license transfer to require more extensive renovations than is required of the seller to continue with the flag. Franchise companies know that…

Hotel values are driven by room revenue and net income.  So whether you are considering selling or refinancing now or later, the more revenue your hotel generates, gross and net, the greater it’s value and the greater your exit profit. Last month Choice Hotels became the latest Franchisor to join the so called ‘Direct Booking…

You’re looking for a hotel acquisition.  You’ve identified some target criteria; States or markets of interest Limited, Select, or Full service Possible brands Price limit Number of rooms, etc. You may also have in mind target parameters such as cap rate, price per key or a room revenue multiplier that fit the product and market….

In many markets, summer is the peak season of the year and hotel investors like to time purchases to take advantage of this strong revenue season. Yet, it may be far more important to time a hotel transaction to the larger ‘season’, or cycle, of the hotel industry. By some accounts, the hotel industry seems to…