How To Manage Hotel Ownership Transitions

Originally published on HotelNewsNow.com

With continuing market volatility and the certainty of closing being a less-than-ideal reality, sellers of hotels should take steps to enable a seamless management transition. At the same time, buyers of hotels must be proactive to ensure they are prepared to assume control of a hotel at closing without any interruption or disruption to guest service and experience. In order to achieve these goals, the parties must concentrate their efforts on transitioning the hotel operations well in advance of closing.

Shadow management

A buyer will want to start thinking about operational transition as soon as possible during the purchase and sale agreement negotiation and the due diligence period. If the management of the hotel is not changing, then the new ownership team needs to integrate with the existing management team.