If you've thought about investing in your own business and are considering the purchase of a hotel business for sale, you'll want to start your venture with a little basic research. Once you've mastered the basics in real estate acquisitions, spend some time learning what it takes to operate a successful hotel business.

Information on hotel business for sale for beginners is prevalent across the World Wide Web. Look for professional organizations and leading experts in commercial real estate and hotel management to help you get a better understanding of what you're in for. Don't make the mistake of only researching what it will take to buy a hotel. The purchase will be only a fraction of your new adventure. Start by:

1. Getting basic hotel buying information from hospitality and commercial real estate experts.

2. Outlining the steps to take when buying a hotel business for sale.

3. Beginning your buying experience with the help of a professional commercial hotel broker.

Action Steps
The best contacts and resources to help you get it done

Get hotel business for sale for beginners information from experts

Find basic hotel acquisition information from leaders in the hotel brokerage or management field. Look for tips on what to consider when investing in a hotel business, how to start your search and what to expect once you've signed the papers and the hotel is yours.

I recommend: Get tips from hotel brokerage specialists Gilchrist Business Brokers, or read the "So You Want to Buy a Hotel" article at Hotel Online publication to find out more about the process.

Follow a guideline of steps when considering a hotel business for sale

There's a right way to buy a hotel, or any business, and a wrong way. Head down the road less traveled and you may experience some major issues that can cause large financial set backs and put a damper on your dreams of owning your own hotel. Read over advice and put an outlined business plan into action.

I recommend: Read the tips on hotel buying from GlobalBX. Learn how to properly evaluate a hotel property and what to consider before making your final decision.

Hire a broker in your pursuit to purchase a hotel business for sale

Don't take a chance by hiring a non-experienced Realtor, or worse, not hiring a Realtor at all. Find a professional hotel real estate consultant that has the experience exclusively in hotel acquisitions. Even if you're not ready to hire a broker just yet, many professional hotel brokers offer good unsolicited advice about buying hotels.

I recommend: Find advice from Everest Hotel Brokers, or hire them to help you in your endeavors. Find links to leading industry publications, associations and other hotel companies to help you with your hotel buying education at the MBA Hotel Brokers website.

Business professionals who are interested in the hotel industry and intend to buy hotel business locations will have many choices to make. You will need to pick the right location for your establishment, decide whether you want an independent hotel or a franchise opportunity and come up with a realistic budget for your purchase. It is also important to check out the competition you will be facing when you want to purchase hotel business locations. You may find a location that appears to have ample tourism all year round, but such an area will likely also have many other established hotels.


Hotel business sales require a good deal of time, money and effort. You must be sure the business opportunity you are considering is right for you. There are many things you should consider before investing in a hotel, including:

1. What costs should you expect, such as purchasing fees, marketing expenses, royalties and inventory?

2. Does the hotel have a name or brand that is commonly recognized by the public?

3. How many employees will need to be hired and trained to properly run the hotel?

4. Is the hotel business for sale ready for operation or will it need construction or remodeling before it can be occupied?

5.Can I benefit from a hotel business broker?

Action Steps
The best contacts and resources to help you get it done

Invest in a franchiseable hotel business opportunity

Purchasing a franchise offers several advantages over starting up a new hotel business. An existing hotel chain has an established name and brand, a business plan that has been tried and tested and the ability to offer ongoing support from the franchisor. The franchisor will have already done the ground work for the business, so you will not have to start from square one.

I recommend: Check into franchises for Choice Hotels International, Wyndham Hotel Group and Key West Inn.

Buy a hotel business for sale that is privately owned

You can also locate an independent hotel business for sale in any state you prefer by searching online. Peruse the listings to find a business that you are interested in purchasing and operating in almost any city within the United States.

I recommend: Invest in a Bed & Breakfast from Business Nation. Purchase a hotel using Bizben.com.

Hire a business broker who has experience with hotel business sales

Business brokers guide you through the process of purchasing a hotel facility from start to finish. Look to them for guidance, financial consulting and business valuation services. They will also aid you with due diligence procedures, and all the other details that must be managed when you are taking over an existing business.

I recommend: Get the help you need from Executive Business Brokers or BIR Business Brokers.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Check with the Better Business Bureau for detailed information on the hotel business for sale you are considering before you make the investment.
• •  Find out if hotel franchises are regulated by your state government, and if so, in what ways.
• •  Confer with a certified public accountant who will investigate the financial history of any hotel you are considering, explain the expenses involved in the purchase and help you understand your long-term earning potential.
• •  Consider working with a hotel business brokerage that will assist you with the purchase.

Many of the terms surrounding the purchase of a hotel business can sound familiar--"franchise," "turn key operation" and "operating results" are all terms that are used in business fields outside of the hospitality industry, so you're likely to have encountered them if you're a business owner. Happily, in the hospitality industry, they generally retain the basic meaning that you're familiar with. However, if you're buying a hotel business, you need to ensure that you understand these terms in the right context.

Action Steps
The best contacts and resources to help you get it done

Hotel broker

A hotel broker specializes in assisting both buyers and sellers with their hotel or motel transaction. With specialty in the hospitality field, a hotel broker can advise you of the special problems that come with buying a hotel or motel, determine the price you can afford and locate hotels and motels that match your business desires.

I recommend: Read about how a hotel broker can help you with your purchase at Hotel Brokers International.

Hotel franchise

A hotel franchise is a business that has a brand name, an existing business plan, support from the franchise company and a clearly defined approach you must take to the hotel, which generally covers everything from business practices to customer service to décor. Buying a franchise hotel can provide you with support, but you lose some control over your business-so if you choose a franchise, be sure that you agree with its overall approach to the hospitality industry.

I recommend: Wyndham Hotel Group, one of the largest hotel franchise groups in the world, presents detailed information on a number of their brands.

Independent hotel

An independent hotel is one that does not operate under a brand name, and the owner has full control over its business plan and operations. An independent hotel may be a small and quaint beachfront property, or it may be a large, full-service hotel in the heart of downtown. Buying an independent hotel allows you to create the business you want, though you won't have the support offered by a franchise.

I recommend: Compare the annual success of independent and franchise hotels in Manhattan at HVS Global Hospitality Services.

Turnkey operation

With regards to hotels, a turnkey operation is one that is sold to the buyer in full, including tangible assets, an existing staff and often management. The buyer is able to step into the business immediately, with little to no disruption of the hotel's business. Franchises are generally turnkey operations, and independent hotels and motels may be.

I recommend: Learn more about turnkey franchise opportunities, including advantages and disadvantages, at Franchise-Guide.org.

Franchise agreement

If you buy a franchise, you will need to abide by the franchise agreement, which lists all of the expectations the franchise owner has of an owner of a hotel under the franchise brand. Before you purchase a franchise hotel, you need to review the franchise agreement.

I recommend: Review the Rezidor Hotel Group’s statement on its franchise agreement.

Operating results

The operating results for a hotel include the business' costs and the income that the business generated. Before you buy a hotel, you need to have a strong understanding of its operating results so you can understand its present position in the market.

I recommend: At Hospitality Net, you can review the overall operating results of a number larger hotel groups, such as FelCor Lodging Trust.