Sell My Hotel in Southern California

Selling a hotel, the key questions

What is my hotel worth?

A hotel is valued primarily on its income, using occupancy, average daily rate (ADR), and revenue per available room (RevPAR), then applying a capitalization rate to net operating income, and often cross-checked on a per-room (per-key) basis. Your flag, management contract, condition, and any required property improvement plan all move the number. A valuation on your actual operating statements gives the real figure, not an online estimate.

Do I sell the hotel with the real estate?

Almost always, yes. A hotel is a real estate and operating business together, so the sale typically includes the land, the building, the furniture, fixtures, and equipment, and the business. That real estate side is handled under my California DRE license, #02372118. Occasionally ownership and operations are split, and we map that out before going to market.

How does my franchise flag affect the sale?

If your hotel is flagged, for example Marriott, Hilton, Best Western, or Choice, the franchise usually must approve your buyer, and the buyer often has to complete a property improvement plan, or PIP, to bring the hotel to current brand standards. We review your franchise agreement and likely PIP early so the brand side does not stall the deal and the PIP cost is priced into the transaction.

What is a PIP, and who pays for it?

A property improvement plan is the list of renovations the brand requires at a change of ownership or franchise renewal. It is usually the buyer's responsibility, but the expected cost directly affects what a buyer will pay, so it is negotiated into the deal. I help you anticipate the PIP so it is a known, managed number rather than a surprise.

Who buys hotels and motels?

A wide range, from individual owner-operators and family groups, especially for limited-service and extended-stay hotels and motels, to hotel companies, private investors, and REIT-backed buyers for larger or full-service assets. I position your property confidentially to the buyer types most likely to pay a premium for it.

A broker who understands flags, RevPAR, PIPs, and the land

Hotels attract owner-operators, hotel groups, and investors who underwrite on RevPAR and the real estate. Selling well means presenting the flag, the performance, the management, and the property as one clean, credible package.

Businesses with real estate are a specialty within my full-service brokerage practice. I handle your valuation, confidential marketing, buyer screening, flag, performance, and real estate presentation, and negotiation, from first conversation to close. When the property is part of the sale, that side is handled under my California DRE license, #02372118. I am a California business broker, a U.S. Marine Corps veteran, bilingual in English and Spanish, and a member of CABB and IBBA.

Buying a hotel in Southern California

Hotels and motels are a favorite for owner-operators and investors who want an operating business backed by real estate. They also carry unique diligence, from the flag to the PIP, and that is where guidance pays off.

I help buyers evaluate occupancy, ADR, and RevPAR, read the franchise agreement and any PIP, understand the management model and food and beverage, line up SBA or commercial financing, and value the real estate. Whether you want a limited-service or extended-stay property to operate or a full-service or boutique asset to invest in, I will help you buy the right one at the right terms.

See how I help buyers acquire a business →