Owning a hotel may or may not be a passion, but it is always a business venture. Your hotel investment has a lifecycle. A hotel investment starts with the acquisition or development of the property, moves through opening, ramp up, operations, renovations, other capital investments, and ultimately, it is time to sell the hotel.
When you plan the hotel investment, its sale is anticipated in the appraisal or valuation. It should also be something you plan at with your initial investment. How long do you want to own the hotel? What age do you want to be when you sell the business? How does the sale tie into strategies for your other investments? Will the sale be timed to coincide with other life events like retirement or children graduating? Will the sale be opportunistic – simply a response when you get an offer – or will it be planned to optimize your return?