Important Things You Need To Do Before Buying A Foreclosed Hotel If you want to buy foreclosed hotels for sale, there are some important things you need to do to ensure you purchase the right hotel. You do not want to spend your money on a property that is going to stress you and give you a lot of trouble. Here are some of the most important things to consider when buying a distressed hotel. Property condition assessment A property condition assessment will give you an accurate view of the condition of the hotel and its systems such as deficiencies that need repair and projected expenses. If your investment involves a change of brands or a property involvement plan, the property condition assessment may allow you to save a lot of money by coordinating the necessary maintenance and repairs with the implementation of any redevelopment or remodeling required.
Environmental site assessment An environmental site assessment should be a standard practice when doing any commercial property transaction. The level of environmental site assessment you choose should depend on your risk tolerance and financing. Your due diligence professional can advise you as to the right level of environmental screening for your transaction.
Hotels under construction If you want to buy a hotel that is under construction, whether new construction or renovation, it is important to carefully assess the status of the project. As a buyer, you should confirm that the contractor of the project and the project is on budget and on schedule. Before you buy a hotel on a property buy sell online platform, you should get a construction status report to get a clear image of the situation. Vacant or dormant hotels Whilst your property condition assessment will address a lot of the conditions resulting from a long period of dormancy, you would like to engage an industrial hygienist to inspect your property for underlying issues. Such as mold, indoor air quality, and legionella. The longer the building remains occupied, the more these issues become serious. Safety and cleanliness In hotels adapting during the Covid-19 pandemic for nontraditional uses such as homeless shelters, quarantine centers, or temporary medical facilities – buyers should ensure the safety and cleanliness of the property. There is no validated or commercially available surface test for coronavirus but proxy texting can be used to evaluate the effectiveness of cleaning. ATP surface testing can provide real-time confirmation of whether the hotel meets the established cleaning criteria. In case the ATP testing results don’t meet the established criteria, a certified safety professional or certified industrial hygienist can provide guidance to develop the necessary cleaning protocols and help in the selection of a contractor for future cleaning. Whilst predictions vary on when the commercial real estate and hotel market will recover, the high demand for foreclosed hotels for sale is a good sign that the market is coming back and will bounce back quickly. No matter the exit strategy or the hold period you have, thorough due diligence will ensure you have a solid footing to achieve your investment goals.