What sets National Hotel Motel Brokers apart
from other lodging brokers?
- Our agents have all owned and operated lodging properties so we know how to run a property at the lowest possible cost with the highest possible income.
- We sell 95% of our listings because of our industry knowledge.
- We have the highest rate of repeat customers in the marketplace.
- We have successfully negotiated solutions for distressed properties.
NHMB agents approach every client’s property with the care and attention they showed in their life as an owner/operator. Their experience with the ups and downs of B&Bs, motels, limited service and full service hotels as a property owner/operator gives them the depth of understanding and expertise to intelligently guide a client in successfully selling or buying a property. NHMB has the finest reputation as lodging brokers in northern California and beyond.
Property Analysis to Measure the Upside
Rather than simply accepting the Profit and Loss statement from the seller and submitting it to potential buyers for them to analyze, our agents examine the operation carefully for potential upside.
We begin our analysis by looking at the gross income. As hotel and motel brokers, NHMB pays for and obtains a STR (Smith travel Research) report for each property which shows what the competitive properties in the subject market areas are achieving in occupancy and ADR compared to the subject property. We analyze the market share of the subject property to understand how it can be improved. We find ways for a buyer to raise the top line sales which means more annual cash income and a higher value. To increase the top line income we consider how the property is aligned. Is it an independent property which can benefit from a franchise? Or can the implementation of an internet marketing company who can improve the marketing through the OTAs (Online Travel Agencies) and other internet marketing methods improve the gross room income?
NHMB real estate agents never put a listing on the market without going through the Profit and Loss Statement, item by item to calculate what the real profit from operations should be. We then consult with prospective buyers to show them what can be done with the property to make it more profitable, thus increasing the value of the property. We look at all costs, such as labor, franchise fees, credit card discounts, insurance, legal and accounting fees and any other fixed or variable expenses that are above what one would normally see in an operation the size of the subject property. For example, is the total labor at 20% to 25%, as is normal, or is it 30% to 40%? An excessively high payroll could be corrected by a new owner, with our assistance. Reducing that expense increases the bottomline profit and thus increases the return on investment of the property.
Only an agent with the experience of operating a lodging property who has been an owner and had to meet a negative cash flow in the off season can make these corrections and can show a buyer the upside potential in a property.
Financing Expertise
Howard and Brian Mathews have handled more than a dozen workout situations for lodging properties in default and assisted the owners and borrowers in the sales of many problematic loan guarantees. Their experience in selling properties during many of the cycles of the lodging real estate market has given them the insight in guiding clients through the intricacies of the finance process. Dealing with SBA lenders and workout programs has benefited owners who have not understood how to negotiate a reasonable workout. NHMB hotel and motel realtors have assisted owners to develop many creative and effective long term plans for distressed properties. This unique financing know-how acquired in the trenches has resulted in solutions to the satisfaction of the borrower and the lender.
The NHMB Difference
The extra work and industry experience that is provided by NHMB benefits the client by increasing the value of the property, shortening the sale time and making the buyers financing more attainable. The operational expertise and financing knowledge of NHMB is why we sell 95% of our listings at the highest possible price. And just as important to us, our operational knowledge and support makes the buyers more successful with their new properties.
To see the NHMB difference, compare the write ups and financial descriptions of any of our listings with that of our competition. Think about which company put the most thought into the listing presentation, which company made the presentation of that property more interesting to a prospective buyer and which one made that prospective buyer more interested in purchasing that particular property. Then think about which company you want to represent your property for sale to prospective buyers.
National Hotel Motel Brokers has an unbeatable track record for satisfied customers, successful escrow closings and problem solving. If you have challenges in operating your property profitably or you would like to purchase a property, call us today at 925 634-2299.
“The key to a successful listing is the experience of the listing agent”