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5 More Money Saving Accounting Features for Hotels

Accounting should be able to provide a hotel owner reliable insight into the operations and financial well-being of their business.  Insightful reports must be available without delay all the time to all key personnel without the owner or others waiting for their accountant to get around to creating the reports.  To operate your hospitality business…

When "Get It Done Applies to a Transfer PIP

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…

Direct Booking Increases Your Bottom Line

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…

Matching your Skillset, Risk Tolerance and Capital to a Hotel Investment

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….

Timing a Hotel Sale to the Large "Season"

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…

Hotel CMBS vs. Bank and SBA Lending

You may have heard recent negative forecasts for commercial financing markets, most notably Hotel Management’s April 18th cover story “Why Lending is About to Get Tighter”.  The Crittenden Report of April 11 also reported on CMBS loan underwriting fluctuations and tightening for hotels, as well as some pullback later in the year by Life Company lenders.  Crittenden…