How do I compare two motels for sale?

Listings for motels are written in different ways, so two of them rarely line up neatly. One mentions a manager’s suite, another a recent roof, a third says nothing about the seasons. If you compare what each seller chose to say, you compare their writing. A better approach is to decide on your questions first, then ask each seller the same ones.

The owner’s role

Find out whether the owner lives on site and what the owner does in a normal week: front desk, cleaning, repairs, bookkeeping. A motel run by a couple who work every day is a different job from one with paid staff. Record the hours and tasks for each, so you can see how much of the work you would be taking on.

The property and the rooms

Note the room mix, the condition of the rooms and the building, and what work is already planned or overdue. Visit both, if you can, and use the same walk-through list each time. Photos are made to flatter, so take your own notes on what you actually see.

Seasons and booking channels

Ask each seller how business moves through the year and how guests find the motel: walk-ins, repeat guests, online platforms, local companies. A motel that relies on one channel carries a different kind of risk from one with several. Ask to see the history, not only a description of it.

What is included

Confirm whether each sale covers the real estate, the business only, or a lease, and what comes with it, such as furniture, equipment, the name and the booking accounts. Your lawyer can explain how each structure works.

• Owner’s hours and tasks, and whether they live on site
• Room mix, condition and planned repairs
• Seasonal pattern and channel reliance
• Real estate, business only or lease, and what is included

Once you have chosen one, the hotel and motel buyer checklist covers due diligence on that property.