Recent NHMB Successes

– Hawthorn Suites in Ann Arbor Michigan

This property is out of our normal territory, but one of the lenders called us in to help get it sold. The property had been previously foreclosed on and was operated by a receiver.  The Hawthorne franchise had been terminated and the property was not only off  the Wyndham system but all of the OTAs. Income had decreased significantly.

Recent NHMB Successes

– The Quality Inn, Oakdale, CA

The Quality Inn Oakdale is a 70 unit full-service hotel which was previously a Ramada Inn franchise.  The property was unable to meet its debt srvice due to the decline in the lodging market.  We found an interested buyer and negotiated a favorable deal with the owner and the bank.

Recent NHMB Successes

– The Concord Inn and Suites, Concord, CA

The Concord Inn and Suites is a 42 unit interior corridor hotel which was previously a Comfort Inn franchise.  The property lost its Choice flag and experienced a drastic decline in revenue since it last sold in 2007.  We listed the property and found a buyer to purchase the property with the plan of converting it to a budget extended stay property unter the “Studio 6” brand by Accor.

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.

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.

What Recent Sales Says

This five unit B&B was struggling due to ownership’s lack of operating experience.  We worked out a deal with both of the existing loans to discount to a saleable price and then assisted the owners in a workout with the personal guarantee on those loans.

The Anchorage Inn was a lender-owned property in the resort town of Lakeport, CA.  We assisted the bank in taking over the property following the trustee sale.  We developed an interim plan while the property was closed down.  We then found a suitable buyer and procured a very quick close that was extremely satisfactory for the lender and the buyer.

We were asked to assist one of our best clients in getting their full-service property listed and sold.  A more expedient solution was to find a long term lease for the property.  We were able to put an appropriate lessee in place which allowed the owner to concentrate on other investments.  Additionally, the lessee is in position to purchase the property when market conditions are more favorable.

This 42 unit franchised property was previously a run down independent motel with very low occupancy and excessive deferred maintenance.  We negotiated the sale in 2006 to a group of investors who completely refurbished the property and converted it to a Rodeway.  The income increased 400%.  We then found an in experienced investor who   bought the property with our assistance in procuring a new SBA 504 loan.