What should I check about a motel’s online booking channels before buying?
Find out which online channels bring guests, what each charges, and whether the listing accounts, reviews and photos transfer to you. A motel can look busy because of channels you do not control. Confirm account ownership and the share of direct bookings before relying on the occupancy.
Ask the seller for a breakdown of bookings by source: walk-ins, phone calls, the motel’s own website, and each online travel site. Then ask what commission each channel takes and how that appears in the books. A high occupancy figure can hide thin margins if most guests arrive through the costliest channel.
Next, ask who owns each listing account. Accounts are often set up under the seller’s personal email, and the platform may have its own rules about transfer. Request that access be moved to the business before closing, and find out what happens to reviews and ranking afterward.
Read the recent reviews yourself. Look for repeated comments about cleanliness, noise or staff, and see how the seller replies. Ranking can slip when management changes, so ask how the seller handled past dips. Ask about the motel’s own site and direct-booking tools, and whether the domain and photos belong to the business. Your lawyer can check the transfer terms, and your accountant can test the revenue by channel. Check how the front desk handles rates and availability across channels. Mismatched information leads to overbooking and unhappy guests, so ask how the seller keeps it in step and who does it. A simple, reliable routine is worth more than a clever one.
Key takeaways
- Get bookings broken down by source and commission.
- Move listing accounts into the business before closing.
- Read recent reviews and the seller’s replies.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Selling
Buying
- Expert answerWhat should I ask about the owner’s role before buying a motel?
- GuideBuying a hotel in Canada
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- Expert answerHow do I take over a motel’s property management software and booking calendar?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are financial statements?
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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