Sell an Independent Motel: Compare Offers, Repair Duties and Guest Handover

Prepare a comparable offer schedule

Use the lodging preparation guide for property, room reports, collections, staffing and condition records. For each actual offer, list buyer/entity, included land/buildings/assets, price/allocation, closing cash, financing contingencies, deferred payments, diligence scope, proposed dates and required approvals. Identify missing terms rather than treating every stated price as equally deliverable.

SBA sale guidance describes defining assets and liabilities in a sale agreement.

Have transaction/property counsel and the tax/valuation advisers review actual structure and obligations. Coordinate operating and property scope; do not add buildings or room value again when already included. Use the lodging financial guide rather than assuming a universal cap rate or price per room.

Agree repair, brand and operator responsibilities

Prepare actual qualified condition findings and itemized estimates for rooms, roofs, HVAC, plumbing, parking, electrical and amenities. Agree who performs and funds each required repair, timing, evidence and consequence if unfinished. Do not promise that a repair dollar creates a fixed two- or three-dollar sale uplift, or assume every report documents every defect.

Have counsel and responsible parties review actual brand/flag, improvement plan, management, channel, software and proposed operator terms through the consent register. Compare supported fees, consents, obligations and termination conditions for each proposal. Neither retaining nor removing a flag guarantees higher net proceeds or eliminates approval/customer demand risk.

Test buyer funding and seller proceeds

Ask for actual financing and closing-readiness evidence through the agreed diligence process, with lender conditions, appraisal scope, investment and reserves explained. Do not rank buyers by demographic stereotypes or assume every experienced operator closes quickly. Business/property appraisal and financing conditions are matters for actual professionals and lenders, not a guaranteed financing ceiling or product recommendation.

Use the seller-proceeds worksheet to separate closing cash, actual debt/payoffs, transaction costs, adviser tax estimates, reserves and contingent amounts. Keep property and operating liabilities aligned with the agreement. Avoid subtracting the same repair investment and price credit twice. Seller financing requires actual legal, tax and lender review of security, priority, payment and enforcement risk; it is not equivalent to guaranteed cash at closing.

Plan uninterrupted guest service and documented handover

Map front desk, reservations, housekeeping, maintenance, channels and management through the coverage worksheet. Confirm permanent coverage, authority and costs after seller help. Allocate actual bookings, guest deposits, credits/refunds, group commitments, vendor/staff bills and complaint responsibility through the delivery guide.

Have counsel assess actual long-stay guest/resident agreements, notices, privacy and proposed data/account access. Identify who performs each remaining stay and holds or funds guest money across closing. Plan truthful staff/guest/vendor communications at the agreed stage. Compare seller training scope, hours, payment and end conditions in writing. A confident timeline, online score or attractive offer does not replace funded duties and verified closing conditions.