Selling an Inn

Current innkeepers have purchased and developed their bed and breakfast inn, marketed it to travelers, and created a hospitality niche like no other. Now might be the time to review where you are with your business and understand its full potential, so you can determine when it is time to sell.

To help with this, we can provide a Marketing Assessment and Valuation (MA&V) to help you with these answers. We offer 2 versions of this service:

Just the Numbers (JtN)

• Inn business-only valuation based on most recent (past 2 years + YTD) financial performance
• What-if? Future performance comparison
• Capitalization Rate Analysis (based on selling price you provide)
• High level buyer’s lending analysis (based on asset value you provide)
• Weighted average valuation report
• Free update once current YTD numbers are complete

Full MA&V (Requires site visit)

• Everything from JtN plus
  • Up to 2 additional years of financial history
  • Comparison to Industry Standards
  • Top-line addition of 1 ancillary business (stables, spa, etc., assuming integrated P&L)
  • Site Survey and facility recommendations
  • 3 additional valuation approaches (Price per Room, Cost, Asset Value)
  • Location & Condition Analysis
  • High-level reconciliation between tax returns and P&L data you provided.

Some owners have asked us to provide this service on a regular basis, so they can track the value of their investment; others wait until they are closer to the point of selling before they take this step. Either way, please contact us to discuss which option is best for you and for the costs associated with each version.

As seasoned Innkeepers and professional consultants, we can also guide you to the various resources in our industry to get you to where you want to be in this business. Feel free to look at our Additional Resources Page for some of our favorites, but also please feel free to contact us at any time to schedule a free consultation to review your needs and how we may be able to help.

Selling Your Inn

When you have determined it is time to sell, we will assist you with the many activities required to get you to the closing table and create a smooth transition to the new owners. Some of these steps may include:

• Develop a comprehensive Offering Report this is the best in the industry.
• Develop a marketing plan for your property that will attract financially qualified buyers to your property.
• Conduct a Room Readiness Plan to attractively “stage” your inn.
• Coordinate buyer’s visits to the property, and follow up for feedback and questions
• Manage all viable offers and negotiate terms on your behalf
• Preparation of financial books in a standardized format with short-term projections…necessary for a BUYER’s business plan
• Identify short-term cost controls to help increase Net Operating Income (NOI) – and thus the selling price – of your property
• Manage a Seller’s Inspection and compile practical repairs and buyer negotiation plans
• Assist you in compiling a complete Asset Transfer and Advanced Deposits Lists and your Gift Certificate Log and other prepaid services list to ensure fair credit at the settlement table
• Compile a list of Buyer’s Opportunities for facility and financial growth
• Assist with Regulatory requirement investigation and resolution