Sell A restaurant / hotel
This guide describes the sale of hospitality properties (restaurants/hotels) in three stages: Preparation (clarify use, document business success using a 2-3 year profit and loss statement, provide floor plans and history, prepare the property for a photo shoot, assess the value of the land, buildings, inventory, and business value), marketing (target group-specific, digital: direct approach, social media, specialist media, portals such as Immoscout/Immowelt/eBay classifieds; for investment properties, also family offices), processing (buyer qualification/proof of financing, reporting, notary appointment – draft purchase agreement ~14 days in advance).
1. Preparation
Use, numbers, documents, valuation
1.1 Use of the property
One should be clear beforehand whether the restaurant property must be used as a restaurant after the sale.
Property or hotel must continue to be used, i.e. whether the seller only wants to sell if the buyer
is either a restaurateur himself, or wants to lease this property as a restaurant property / hotel.
1.2 Documenting the success
Every buyer, whether a restaurateur or a real estate investor, wants to see the figures of the business operations. However, a profit and loss account of the last 2-3 years is sufficient . But also for us: as a specialist in catering properties, it is essential to know the fixed costs and potential sales in order to assess the business value . Only with the figures we have can we create a forward-looking business plan for the buyer. It is helpful to record all the parameters with you in a personal discussion. With the business plan, we help the prospective buyer to obtain financing from the bank of their choice.
1.4 illustration
What you eat is what you see, and that's not just true for the dishes in a restaurant, but also for the purchase of a property. This means that everything should be presented as neatly as possible. For the owner, this means that on the day of the photo shoot, the property and all rooms should be appropriately prepared, clean, and ideally beautifully decorated. So, there's a lot to do, even for a seller. Selling a restaurant isn't just the real estate agent's job; the successful sale of a restaurant property begins with the seller's preparation.
1.5 Valuation
We will provide a valuation of your restaurant or hotel property. The value is based on four factors:
Property value
Value of the property
inventory
Goodwill
Once we've determined the value, we need to jointly decide on the price at which we'll start marketing. Current market conditions and the pandemic, in particular, have had an impact on market prices.
2. Marketing
2.1 The target group
Depending on the type and price range of the property, different target groups emerge. These target groups can be reached via different channels and addressed using different communication tools. We primarily use digital marketing, as this has recently been the most successful form of communication. However, digital marketing also includes personal and very direct means, such as personalized emails to our prospective customers from our customer database. A somewhat broader approach is then taken via social media and restaurant networks, and in the next step, via trade magazines with digital advertisements. Of course, we also utilize major portals such as Immoscout , Immowelt , or eBay Classifieds . A hotel or restaurant can certainly also represent a great investment property. In such cases, we also market to "family offices," i.e., asset managers, who are very often grateful and interested in such offers.
2.2 The potential buyer
As soon as we have contacted the first interested parties, we ensure that the estimated purchase price can be financed accordingly. We require appropriate proof from the interested party. This way we can ensure that we do not unnecessarily demand neither your time nor ours. Only once this has been ensured do we begin on-site viewings. We do not consider an online viewing to be productive, as a catering business, as well as a hotel, requires a lot of explanation, and questions often arise during a viewing that cannot be satisfactorily answered in an online viewing or cannot always be documented visually. Since catering properties or hotels are often centrally located in town, a change of use to residential property may also be an option. We also have the top 250 residential property developers for these potential buyers.
2.3 Reporting
With our marketing status report, you not only stay close to the sales process but also always stay in control. We provide you with a regular overview of the status quo of individual marketing activities. We welcome your feedback to implement changes or explore alternative approaches.
3. The settlement
Reporting, notary appointment, handover
3.1 Preparation for the notary appointment
Before you can prepare for the notary appointment, you first need to select a notary. It's always helpful to choose a local notary. Once this is done and the notary appointment is scheduled, the preparations begin. We help our clients with this by taking over communication with the buyer and the notary on their behalf. The purchase agreement is sent to the respective contracting parties for review 14 days before the appointment. We always recommend discussing this agreement with our clients before the appointment to clarify any questions that may arise.
1. The preparation
1. What factors determine the selling price?
Land value, buildings, inventory, and goodwill – determine the starting price in the context of current market conditions.
2. Why is proof of financing useful before viewings?
It saves everyone involved time by allowing only potential buyers to view the property on-site.
3. When will the purchase contract arrive?
Typically, approximately 14 days before the notary appointment for review and preliminary discussion. This deadline is only exempt in the case of two fully qualified merchants.
4. Who are the target groups?
This depends heavily on the property. For restaurants, it's either restaurateurs who run the business themselves, or private individuals who then lease it out. Hotels are often purchased by hotel investors or hoteliers.
Do you want to lease your restaurant property or hotel?
Then contact us:
