Selling a hotel or motel goes best with a clear plan: know your numbers, prepare the property and your team, price it against comparable sales and market it to qualified hospitality buyers. Hotels are valued on their income, so organized records and a well kept property are your biggest advantages. Here are the six steps we follow when selling a hotel or motel in Bellingham, Whatcom County and Northwest Washington.
In This Guide
- Step 1: Decide Why and When to Sell
- Step 2: Organize Your Records
- Step 3: Compare Your Hotel to the Local Market
- Step 4: Prepare the Property and Your Team
- Step 5: Price the Hotel
- Step 6: Market and Close the Sale
- Selling a Hotel FAQ
Step 1: Decide Why and When to Sell
Start with your goals. Owners sell to retire, to move into a different investment, to free up equity for a larger property or to trade into a new property through a 1031 exchange. Knowing your goal helps shape your timeline, your price and the terms that matter most to you.
Timing also matters. Hotel buyers look closely at recent performance, so the strongest time to sell is often after a run of solid months, when occupancy, average daily rate and revenue per available room (RevPAR) show the property at its best. Travel to Bellingham and Whatcom County is supported by Western Washington University, tourism, the Canadian border and Interstate 5, which keeps hospitality properties here on investors’ radar.
Step 2: Organize Your Records
A buyer’s confidence comes from your paperwork. Gather these before you list:
- Two to three years of profit and loss statements, plus year to date numbers
- Monthly occupancy, average daily rate and RevPAR
- Franchise agreement and any brand requirements, if the hotel is flagged
- Licenses, permits, ownership and registration documents
- Recent capital improvements, renovations and maintenance records
- A list of furniture, fixtures and equipment included in the sale
Clean, complete records help buyers and lenders move forward quickly and support a stronger price.
Step 3: Compare Your Hotel to the Local Market
Look at how similar hotels and motels in your area are performing and what they have sold for. Comparable sales, current listings and local travel trends all help set expectations. You can see current listings on our Bellingham hotels and motels for sale page and across the state on our Washington hotels and motels for sale page. For the bigger picture, visit our Bellingham commercial real estate market page.
Step 4: Prepare the Property and Your Team
First impressions count with hotel buyers just as they do with guests. Focus on repairs that buyers notice right away, such as the exterior, entry, lobby, signage and guest rooms. Complete essential repairs first, then choose updates that give the best return. Highlight the features your guests love, like a great location, views, parking or a popular breakfast.
Prepare your staff too. Keeping key team members informed at the right time helps the hotel run smoothly during the sale, and a steady, experienced team is a real selling point for buyers.
Step 5: Price the Hotel
Hotels are usually priced on income. Buyers look at net operating income and cap rate, along with price per room and gross revenue multipliers. Location, condition, brand, room count and growth potential all play a part. We review your financials and recent comparable sales to recommend a price that draws strong buyer interest. Our guide What Is Your Commercial Property Worth? explains the main valuation approaches.
Step 6: Market and Close the Sale
Most hotel buyers start their search online, so strong online exposure matters. We market hotels through the Northwest MLS and commercial listing networks, our website and direct outreach to hospitality investors, with professional photos, drone video and a clear property package. Detailed financials are shared with qualified buyers who sign a confidentiality agreement, which keeps your business information protected.
Once you choose an offer, the buyer completes due diligence, reviews the books, inspects the property and arranges financing. If the hotel carries a brand, the franchise will also review the new owner. We coordinate each step with the buyer, lender, title and escrow so the sale closes on schedule. Planning to buy instead? See our hotel investment tips.
Sell Your Hotel With a Local Commercial Team
We help owners sell hotels, motels and other commercial property across Bellingham, Whatcom County and Northwest Washington, with over 25 years of experience. For a full look at the selling process for any commercial property, read our guide to selling commercial real estate in Bellingham.
For a look at hotels and other commercial property for sale now, visit our Bellingham commercial real estate page.
Selling a Hotel FAQ
How do you sell a hotel?
Start by organizing your financial records and preparing the property. Then price the hotel using its income and recent comparable sales, market it to qualified hospitality buyers and work through offers, due diligence and closing. A commercial broker with hotel experience keeps each step on track.
How is a hotel valued?
Hotels are valued mainly on income, using net operating income and cap rate. Buyers also look at price per room, gross revenue multipliers, occupancy, average daily rate and RevPAR, along with location, condition and brand.
What records do I need to sell a hotel?
Plan to provide two to three years of profit and loss statements, monthly occupancy and rate reports, any franchise agreement, licenses and permits, maintenance and renovation records and a list of furniture, fixtures and equipment included in the sale.
Who can help me sell a hotel in Bellingham?
Josh and Jolene Baijot are Bellingham commercial real estate brokers with over 25 years of experience selling hotels, motels, apartment buildings and other commercial property across Bellingham and Whatcom County. Call us at (360) 223-4501.
Thinking about selling your hotel or motel?
Helping owners across Bellingham and Whatcom County
