Plenty Of Signs Industry Is On Solid Footing Despite Downturn  “Contrary to what you may be reading in some of the press, our industry is not and most likely will not face some of the hard times other industries are now up against... deals are getting done and will continue to do so by those that can think creatively.” (Source:  hotelbusiness.com).

Read full article at www.OKCInvestments.com.

 

Furthermore, hotel room demand is driven by business and tourist travel, which are closely linked to the state of the economy. Luckily, the state of Oklahoma’s economy is contrary to the rest of the nation.  We are doing well in Oklahoma.  Visit www.OKCInvestments.com for more information about the state of Oklahoma’s economy.

Tips

That May Add to Your Bottom Line

How to Save $$$ on Your Property Insurance

Did you know that Commercial Property Insurance carriers re-evaluate the risk on entire property types and areas each year? By getting quotes from several AAA rated companies each year you could save thousands on your annual premiums!  Contacting a local, independent agent, or a web-based search are great ways to find out how much you could save.

 

How to Save $$$ on Your Energy Costs

The hotel industry spends nearly $5 billion annually on energy. Much of that is wasted on empty rooms, inefficient equipment, and poor energy management practices. Putting an energy management plan into place addressing these areas will dramatically improve your bottom line.

Quick Facts

 

When considering selling your hotel, the following points will help with positioning the sale for success:

 

Free up the property from franchise agreements and management contracts.  You may  be able to negotiate a buyout or cancellation provision that will allow you to terminate the contract in the event of a sale.

Timing is critical. The hotel real estate market is driven by occupancy cycles brought about by changes in supply and demand. Look to sell when occupancies are approaching but have not yet reached peak levels Another good time to sell is just after you have made a significant change to the property such as adding guestrooms and banquet space. When this occurs, your broker can tout the “future potential” of such an addition. Sometimes the anticipated future may create more value than the real future.

An experienced hotel broker will likely generate incremental value far in excess of any fees. These highly skilled sales people know who the buyers are, understand how to position the property to achieve the best sales price and create a competition among the buyers that maximizes the offers.

A clean hotel sells better and faster than a worn out property. New paint, carpet, drapes and spreads will generally create a higher price than the cost. Curb appeal is important. Clean the exterior, patch the parking lot and make the property look inviting. However, the cost of a new roof or heating system is not usually justified — a buyer will likely just deduct this from the price. It’s best to fix obvious maintenance issues and make replacements that offer a one-year or less payback.

In addition to these ideas, when deciding to sell your hotel, look into the tax planning issues, keep key employees during the sales process, reinvest your capital, Now is the time to work on your hotel divestiture strategy so everything is in place when the buyers come to look..

This newsletter has been brought to you courtesy of:  Robert Williams, of InterWest Realty, who in 2007 sold $58,692,000 in Commercial properties. If you would like to be added to my list of over 5,758 Buyers and Sellers who have up-to-date information such as this delivered directly to their e-mail inbox, please visit my website at:  www.OKCInvestments.com or call me at (405) 822-2877 to sign up today.

If you ever considered selling your property, or are just curious about your property’s current Market Value, please contact me for a

FREE, confidential Market Evaluation at (405) 822-2877 , or e-mail me at Robert@OKCInvestments.com.

WWW.OKCInvestments.com

Hospitality Owners Quarterly

Industry Information, Maintenance Tips, Marketing Ideas,

Sales and Financing to Help Your Business Grow

First Quarter, 2008

Robert Williams, IW Realty

8315 Glenwood Ave., Oklahoma City, OK 73114

 

 

 

 

 

 

OKLAHOMA

~  AT A GLANCE ~

Unemployment Rates:

Down to 3.5% Vs. National: 4.8%

Avg. Sales Price of Existing Home:

UP 7% in Oklahoma City (Up 4.24% in State)

Number of Foreclosures:

 Down 13%  Vs. National: Up 80%

Cost of Living:

Lowest in the Nation

All Major Oklahoma Products and Industries:

Up and booming!