What is the Appraised Value of  Your Hotel?

If you are considering selling your hotel, contact Cornell for a market analysis and hotel price consultation.

• We can analyze your hotel, local market, recent hotel sale comps, local competition, and other pertinent factors that contribute to price valuation.

• The turnaround time is quick, and the information you gain will be useful.

Sell versus Hold Decision

Hotel stakeholders will need to know their options before they can make a sell versus hold decision. The sales process starts by gaining useful knowledge.

What is a Broker’s Appraisal?

An Appraisal done by a Broker is known as a BPO. It contains all the vital price data you will need to make a sell or hold decision.

See Library Articles:

• How much is your hotel worth? Price?
• Before You Choose the Listing Broker – You Need A Price Valuation
• Hotel Market Analysis & Price Valuation Software

Sell versus Hold Decision

Hotel stakeholders will need to know their options before they can make a sell versus hold decision.

The Sales Process Starts by Gaining Useful Knowledge.

What is the likely price the market will pay for your hotel?

We can help you with price valuation. Cornell can perform an in-depth price valuation and hotel market analysis in a timely manner. A brief and concise Appraisal is often called a Broker Price Opinion (BPO). A BPO contains all the vital price data you will need to make a sell or hold decision.

The Broker Price Opinion (BPO) is an excellent price valuation method when based upon the Income Approach. The Appraisal Institute defines real estate appraisal as:  “the act or process of developing an opinion of value for a specific property.“

Sellers who anticipate selling their hotel will need a market-based price estimate (BPO). Call Cornell for a Price Valuation Consultation.

See Library Articles:

• “About James Cornell”
• “Our Offer to You”

Occupancies are Rising. Why sell now?

You will need to decide when to exit the market and sell your hotel(s). Hanging in there for too long could be a losing strategy. The economy will rise and fall in a never-ending cycle. Who can predict the market economy? Economic downturns, among many other factors, can negatively impact the price you receive from a sale.  Sellers need to catch the rising tide, which raises hotel property prices.

Below is an example of a simple math formulation. In a rising economy, what if you had a $100,000 increase in net income?

Example sale price realized at .10 Cap Rate

When selling at a capitalization rate of .10 (Cap Rate), every dollar will add approximately $10 (dollars) to the selling price. A net income that has increased $100k in a rising market will bring in an additional million dollars ($1,000,000) upon the sale of a hotel property.

Equation: Hotel Price = Net Operating Income / Cap Rate

$100,000 / .10 (cap rate) = $1,000,000. Over one million more sales dollars realized from a sale.

Read the full Article in our Library: “Occupancies are Rising. Why sell now?”

We at Cornell are With You All the Way, from Start to Finish

The sales process does not have to be complicated. Cornell seeks to make the process easier and much less frustrating.

We don’t want to burden our clients with complicated contracts or unnecessary paperwork. However, all necessary communication and documents will be handled promptly and with care.

Read the more comprehensive version of this Article in our Library: “The Sales Process from Start to Finish – What to Expect.”

Outline of Topics to Make Your Life Less Frustrating:

1. Respect is the Basis for Great Broker and Client Relations
2. Initial Meeting Between the Principals
3. Decision to Sell or Not Sell – For How Much Will Your Hotel Appraise?
4. Choosing the Right Broker
5. The Seller (client) Sets the Price and Terms of a Sale
6. What is the Probable Market Price for Your Hotel?
7. What is a Broker Price Opinion (BPO)?
8. Exclusive Right to Sell Listing Agreement
9. Cornell Seeks Only Serious and Qualified Buyers
10. Property Showings – Site Visits – Discretion Advised
11. The Buyer Makes an Offer to Purchase the Hotel
12. Creating the Purchase and Sale Agreement
13. Negotiating the Purchase and Sale Agreement Terms
14. Ongoing Communication is Imperative
15. Accepting the Offer
16. The Due Diligence Period
17. Scheduling the Inspection Professionals
18. Property Appraisal is Ordered by the Purchaser’s Lender
19. Closing the Sales Transaction – The Sales Proceeds Are Distributed
20. Final Thoughts

Please Keep in Mind: We are with you all the way, from Start to Finish.