Florida Hotels and Motels for Sale

In this article we will talk about how RevPAR can help you to stay competitive and profitable. RevPAR is a performance metric used by hotel and motel operators to maximize room revenue. It is calculated by multiplying your hotel’s ADR (Average Daily Room Rate) by its’ Occupancy Rate. Keeping accurate and timely financial records is a must to be able to properly determine your hotel or motel’s profitability. These metrics will help keep you moving in the right direction.

It is important to understand how profitable your Florida hotels for sale or florida motels for sale is as compared to the previous years. The only way that you can see how you are doing is by comparing revenue data for specific periods. Just because your hotel has high occupancy does not mean that it is profitable. Some hotel and motel operators make the mistake of filling too many rooms via the online travel agencies, such as hotels.com, Expedia and Travelocity. The problem is that those agencies will fill your hotel rooms at a very low average daily room rate. This might be a good strategy if you have other revenue sources onsite that will benefit from the added traffic. The right mix of guests from different sources will help the rooms stay full, but also keep your Florida hotel or motel profitable. RevPAR, ADR and Occupancy rates will help you determine the right mix that is best for your Florida hotel.

Knowledge of your local market is imperative to properly position your Florida hotel. To set the daily room rate you must know the completion and what they are doing. You must also know about any seasonal changes in your local Florida hotel market. One of the most important questions you should ask is where the more profitable hotel guests are coming from? Is it a certain geographical area, or a specific website, or drive by clients? If you have a lot of traffic coming by, how is your hotel or motel’s curb appeal? Have you updated your hotel rooms and kept them clean?

How is your online reputation? In this age of social media, you have to track your Florida hotel or motel’s reputation online. There are many travel sites that allow hotel guests to leave feedback regarding their stay at your Florida hotel. You want to make sure you address any issues and quickly resolve problems. Your online reputation alone can be a great tool to drive new guests to your Florida hotel or motel, but it can also keep them away.

If you are considering purchasing a Florida hotel or Florida beach motels for sale, you must carry out a full due diligence on the property to ensure future success.