Hotel products being positioned for sale

Author: Gabriel Peterson, James Kirk (yBC.tv)

Categories: Brands, Deal-making, Financial
Tags: Brands, exit strategy, franchise agreement, management agreement, selling, VP
Hotel products are bought and sold by The Blackstone Group. In this TV show Gabriel Petersen discusses how to best position the hotel for the sale.

No tricks to sell hotel products

I think the message is that the same way we have to sell a lot, we have to buy a lot, so we do both. No matter how smart you try to be the reality is, the market is the market. There’s no point in making the old silly tricks to try to… of course you put your best for forward, you try to be very transparent as to what the asset does, and then you let the buyers and the bidders just factor in whatever they want to factor in, in terms of what they want to do with an asset. From the brand perspective if you have an interminable franchise agreement and management agreement that helps if you are selling VP. It gives optionality to the buyer which is much wider that if you’re just selling within a specific brand, where they get just stuck with that brand, so optionality on the brad side is also key, but that’s not something you choose, that’s something you have. You either have or you don’t have. So you need to adapt your strategy for exit depending what the situation is from the brand point of view. The Hospitality Channel will have videos about all aspects of the industry, including more on buying and selling hotel products.
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