How do I check a hotel’s occupancy and room revenue records?

A hotel’s occupancy and room revenue are the first numbers most buyers look at, and they come from the seller. Your job is to test them against records the seller did not prepare for the sale. The method is simple: gather several independent sources for the same stretch of time and see whether they agree.

Start with the system reports

Ask for the property management system’s daily and monthly reports, including rooms sold, rooms available, average rate and any rooms taken out of service. Ask how the system counts complimentary and staff rooms. Request the raw export rather than a summary, and ask who can change entries after the fact. A different definition of occupancy can change the picture entirely.

Reconcile to money that moved

Compare the system’s room revenue with the night audit sheets, the card processor statements, the statements from online booking channels and the deposits in the bank account. Differences are normal because of timing, commissions and refunds. Unexplained gaps are the thing to ask about. Your accountant can design the reconciliation and tell you what to expect.

Look for income that will not repeat

Ask which stays came from a contract, a crew block, a sports tournament, a film shoot or a government booking. Find out whether those customers are likely to return for the next owner and whether the arrangement is in writing. Read a full year of months, so seasons and events are visible. The inventory and equipment questions apply to the rooms as well.