Peter Nichols is vice president and national director of the Hospitality Group at Marcus & Millichap, a real estate brokerage firm. Nichols says that when looking for qualities in a hotel broker, start with an excellent knowledge of the market, and consider these six other “musts.”
1. An exceptional understanding of the entire process of selling a hotel.
“This includes the different types of franchise opportunities and having personal relationships with those brands.”
2. Relationships with management companies.
“This enables the broker to recommend a company so the buyer is optimally positioned to succeed financially, further enhancing the client/broker relationship.”
3. Banking relationships needed to help buyers secure financing.
“Brokers should be well versed in what the market will provide in terms of financing for a property to successfully execute transactions.”
4. An understanding of hotel operations.
“There should be a forward-looking P&L to explain why you believe the property will perform at this level five years from now.”
5. An understanding of the types of reports required prior to closing.
“Failure to provide, or fully understand a required report can slow the process—or even quash a deal—if it reveals something that could have been dealt with sooner.”
6. Being honest and direct.
“A deal will go more smoothly if there are no surprises. This means asking the right questions and ensuring that, once known, information that could be problematic is disclosed promptly and incorporated into the contract.”