How do I get my motel ready to sell?

Buyers look at a motel for what it will do without you. The more of that you can show on paper, the fewer questions slow the sale down later. Preparation takes months, not days, because some of it needs a full season of records. Start while the motel is still running well and you are not in a hurry. The steps below are the ones buyers and their advisers tend to ask about first.

Clean up the books

Keep family use, personal spending and unpaid family labour clearly apart from the motel’s own costs. A buyer will rebuild your statements, and the fewer mixed items they find, the easier that is. Ask your accountant how to present these items honestly and in a form a lender will accept. Keep booking-site statements next to bank deposits so revenue can be traced.

Put the motel’s history in order

Gather your booking-site history, guest reviews and any replies you sent. Write a room-by-room record of condition, what has been replaced and what is coming next. Fix the cheap and visible items, such as tired signage, a dim entrance, stained carpet or a broken door closer. Ask a broker which visible items a buyer would notice on a first walk-through.

Make the motel run without you

Move booking, supplier and utility accounts into the business’s name where you can. Write down the daily routines for the front desk, housekeeping and maintenance, along with the names of regular suppliers and long-standing guests. Our guide to selling a hotel or motel in Canada covers the structure of a sale.

A short preparation list

• Statements that separate family and business use
• Booking-site and review history in one place
• A room-by-room condition and renovation record
• Written routines and a list of key suppliers