Sourcing & Identifying Opportunities
The acquisition process begins by defining what constitutes
an attractive hospitality investment.
This includes selecting target markets, establishing a
property buy-box, evaluating location and demand
characteristics, and aligning opportunities with the
buyer's capital and operating objectives.
Deal sourcing may involve public commercial listings,
platforms such as LoopNet and CoStar, and off-market
relationships.
Underwriting & Valuation
Hotel underwriting connects the purchase price with
the property's operating performance and investment
potential.
Financial evaluation examines historical results,
projected occupancy, average daily rate (ADR),
revenue per available room (RevPAR), net operating
income (NOI), and anticipated capital requirements.
A pro forma can model cash flow, cash-on-cash returns,
downside scenarios, and the relationship between
acquisition costs, improvements, and future performance.
Due Diligence
Before committing capital, buyers need a clear
understanding of the property's condition, existing
operations, and potential liabilities.
Due diligence can include site visits, third-party
inspections, accessibility reviews, operating
assessments, and evaluation of deferred maintenance.
When repositioning is anticipated, the process also
considers property improvement plans (PIPs),
capital expenditures (CapEx), and the scope of
necessary renovations.
Negotiating & Closing
Once an opportunity meets the initial investment
criteria, the focus shifts from evaluation to
transaction execution.
Acquisition support can include preparing a letter
of intent (LOI), coordinating negotiations, reviewing
due diligence findings, and supporting the transaction
through closing.
The objective is to connect the purchase decision
with the operational and capital requirements
identified during the evaluation process.
Financing Guidance
Acquisition financing affects the investment's
capital structure, future cash flow, and resources
available for property improvements.
Guidance can include preparing operational plans
and projections, supporting lender underwriting,
exploring financing structures, and facilitating
lender introductions.
Potential financing options may include SBA 504
and SBA 7(a) programs, depending on the transaction,
borrower eligibility, and applicable lending
requirements. Financing approval is not guaranteed.
Repositioning, Launch & Operations
For an existing boutique hotel, acquisition success
depends on what happens after the transaction closes.
Repositioning may involve renovation planning,
room and common-area design, branding, furnishings,
technology systems, staffing, and pre-opening
preparation. Hotel Turnkey works with BNB Construction
for building and
construction work.
Launch preparation connects these improvements with
marketing, distribution, direct-booking infrastructure,
and pricing strategy. Ongoing operations then bring
together guest services, revenue optimization,
financial reporting, and owner updates.