Selling Your Hotel? Why You Need a PMS Before You Do
When you’re ready to sell your hotel, it’s important to have a good property management system (PMS) already in place. A PMS helps you to keep track of your hotel’s finances, bookkeeping, and maintenance records. It can also help you manage your staff and guests. Having a good PMS in place before you sell your hotel can make the sale process go more smoothly and help you get the best price for your property. If you don’t have a PMS in place, now is the time to get one.
What is a PMS?
A hotel property management system (PMS) is a software application that supports the day-to-day operations of a hotel. A good PMS will help streamline your hotel operations, improve guest satisfaction, and increase your bottom line.
While there are many different types of PMS on the market, they all share a few key features. A good PMS should have a centralised database that stores all of your hotel’s data, including guest information, reservations, and room rates. It should also include a booking engine that makes it easy for guests to book rooms online. You should also pick one that has a powerful channel manager that enables easy room distribution. And finally, a good PMS will offer reporting and analytics tools to help you track your hotel’s performance.
Why is a PMS a good investment before you sell your property?
If you’re thinking about selling your hotel, it’s important to have a good PMS in place before you do. Think of it like selling a home – there will be more buyers looking for a home that’s ready to be lived in, rather than one that needs a new roof and a lot of renovation. This is because it can be a big time and money investment, and it’s much easier to purchase something that’s ready to use as soon as they get the key. A hotel with a good PMS is the same.
Already having a good PMS to manage your property will mean less work for the buyer once they purchase it. Straight away, it’s indicates to any buyer that your hotel is being managed properly and that it’s running smoothly and efficiently. This, in turn, can mean they’re willing to pay more for your property.
Without a PMS, the buyer may worry that your hotel is not being managed properly and that they could be inheriting a mess, driving the price down.
What should you look for in a PMS before you sell your hotel?
When you’re looking for a PMS to help manage your hotel before you sell, there are a few important features to keep in mind.
First, you’ll want to make sure that the PMS you choose has a centralised database. This is important because it will make it much easier for the buyer of your hotel to transition into using the PMS since all of your hotel’s data will be stored in one place. They’ll be able to use this to see exactly how you manage your bookings, your staff and your pricing from the minute they walk in the door.
You’ll also want to make sure that the PMS you choose has a robust booking engine. This is because potential buyers will want to see how easy it is for guests to book rooms at your hotel, and the success you have with direct bookings. If you have a high direct booking percentage, this will be attractive to buyers as they will lose less money to OTAs clipping the ticket. If your PMS makes it difficult for guests to book rooms, it means more work for them if they were to buy your property.
If you’re selling your hotel, it’s also important to have a PMS that includes a channel manager. A channel manager is a software that allows you to manage your hotel’s online distribution channels from one platform. This includes OTAs (online travel agencies) like Expedia and Booking.com, as well as your own hotel website.
Having a channel manager will make it much easier for the buyer of your hotel to transition into using the software, as all of your hotel’s distribution channels will be managed from one place. This will save them time and money, as they won’t need to manage each channel separately. In addition, having a channel manager will show potential buyers that you have a good handle on online distribution. This can be a deciding factor in whether or not they purchase your property.
Finally, it’s important to have a PMS that shows how much revenue your hotel makes before selling it. This will help you during the negotiation process as you’ll be able to show potential buyers exactly how profitable your hotel is, and what you’re projected to make in future. Having a PMS that tracks revenue is important because it can help identify areas of your hotel that may be underperforming. If you’re able to show potential buyers that you’re aware of these issues and are working to fix them, it can again instil confidence in their purchase.
Investing in a good PMS is a smart move if you’re thinking about selling your hotel.
A good PMS will help streamline your hotel operations, improve guest satisfaction, and increase your bottom line. This, in turn, will make your hotel more attractive to potential buyers, which could lead to a higher purchase price.
If you’re thinking about selling your hotel, make sure you have a good PMS in place first. This will give the buyer the confidence they need to make a successful purchase.
Getting ready to sell your hotel? Try Preno for free today.
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