What is ‘hotel due diligence’?
Hotel due diligence is the thorough and wide-ranging investigation into a hotel property when considering for acquisition. It is an essential step for would-be hotel buyers as it analyses all aspects of a hotel’s business. This lets the buyer know each and every aspect of the hotel and helps avoid any surprises that could come later. Ultimately, it informs the buyer’s purchasing decision, and can help guide hotel strategy.
In this article we look at the five main areas to consider when carrying out your own hotel due diligence. Before we begin, it must be said that hotel due diligence should never be rushed or compromised in any way. It is a crucial step of the hotel investment process that must be all-encompassing and analytical. If not, it can negatively impact your ROI.