Hotels & Motels

Buying a Hotel Means Buying a Business, Not Just Real Estate

Purchasing a hotel or motel is fundamentally different from buying other commercial real estate — you are buying both a property and a business. Every aspect requires specialized due diligence, from financial performance to licensing to zoning.

The Fraser Valley benefits from year-round tourism around Harrison Hot Springs and Cultus Lake, growing agri-tourism in the eastern valley, and steady Highway 1 corridor motel demand from travellers between Vancouver and the Interior.

How Hotels & Motels Are Valued

Key drivers of value in this category

Revenue & Occupancy Reviewing at least three years of financials, seasonal occupancy rates, ADR, and RevPAR to assess true profitability.

Licensing & Permits Business licences, health authority permits, liquor licences if applicable, and Tourism BC compliance requirements.

Zoning & Land Use Confirming proper zoning for hospitality use and understanding any restrictions on expansion or rezoning potential.

Commercial Financing Hospitality financing evaluates business income, not just the real estate — a different lender conversation than standard commercial.

Hotels & Motels Due Diligence

What to verify before you commit

Financial StatementsAt least three years of statements, occupancy by season, ADR, and RevPAR trends.

Licensing TransferUnderstanding what business licences and permits transfer with the sale versus need reapplication.

Staff & OperationsReviewing staffing levels, management structure, and operational continuity through a transition.

Brand & Franchise AgreementsIf flagged, confirming franchise agreement terms, fees, and approval requirements for a change of ownership.

Physical ConditionPIP (Property Improvement Plan) requirements for branded properties, deferred maintenance, and capital reserve adequacy.

Confidentiality ProcessDiscreet marketing to protect ongoing operations and staff during the sale process.

Hotels & Motels Questions, Answered

Yes — you're buying both a property and a business. Financial review typically covers at least three years of statements, occupancy rates by season, ADR, and RevPAR, on top of standard property due diligence.

Marketing is typically handled discreetly, often without a public listing, to avoid disrupting ongoing operations, staff morale, or guest relationships during the sale process.

Requirements vary by property but can include a business licence, health authority permits, a liquor licence if applicable, and compliance with tourism accommodation regulations.

Primarily on income — a capitalization rate applied to net operating income, informed by occupancy, ADR, and RevPAR trends, plus the real estate's underlying value and condition.

It's different rather than strictly harder — lenders evaluate the operating business's income and management track record alongside the real estate.

Year-round tourism around Harrison Hot Springs and Cultus Lake, growing agri-tourism in the eastern Fraser Valley, and steady Highway 1 corridor motel demand.

Buying or Selling Hotels & Motels?

Every transaction in this category has its own rhythm and considerations — let's have a direct conversation about yours.

(604) 727-9542

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