Counter a Decline in Activity

There is always a lot of talk in any property industry about how strong the market is. Everyone wants to hear how good the market is.

Unfortunately those who advise others that the market is great when it is not, do a disservice to those wanting to make informed decisions. The best decisions can then be made as to how to market a motel within that market. In a market downturn (or at anytime) the best response would be the truth and the truth is that the market is never ‘great’ all the time.  

The motel market is no different to any other. It has its ups and downs depending on what demand there is for motel businesses and properties and this demand is driven largely by factors such as the strength and demand for accommodation, how well motel businesses are operating, how easy it is to gain finance on such businesses, market sentiment in regards to the economy, political stability, etc. When confidence is down the market tends to go into its shell and therefore as a result the quantity of motel sales go down and the yields increase resulting in lower values. This is no different to any market, whether it be residential property, motor vehicles, shares, etc.

The best way to sell a motel in a market that is down is to consider different marketing initiatives and counter the decline in market interest by being proactive and drawing potential buyers out of their conservative cubby holes. There are many opportunities and initiatives available to vendors to assist them to build up market interest in their motel businesses.

An experienced and professional motel broker can assist a motel owner in this area who is wanting to sell. Unfortunately simply running an ad in the local newspaper is not going to make the grade. Therefore utilising to the full extent, the tools available to the broker will offer the best opportunity to build strong interest in a motel to achieve a successful result, even in a poor market.

During the marketing campaign of a motel there are various stages that the campaign will go through. A very generalised campaign may include the initial preparation period, the gathering of information and determining how the campaign should be run.

Once the marketing plan is in place, next includes the preparation of the marketing material and the placement where the target market will be focused on. A lot of marketing funds and time can be wasted by not focusing on the target market. Implementation of the marketing then leads to how any enquiries and interest will be handled. Incorrect assessment and qualification of enquiries can again lead to a lot of time and money being wasted by all involved.

The management of the marketing program and subsequent sale process from start to finish is imperative. The major level of activity will be seen largely at the start of the marketing process as it builds up to increased interest and activity in the business or property resulting in negotiations between buyers and seller and resulting in a contract of sale being entered into between the parties. A negotiation period can be short or can be a very drawn out process.

The marketing campaign then shifts to the management of the sale process through to settlement. This period is no less important than any other during the campaign and all can be for nought if this is not handled well by all those involved, seller, broker, solicitors, buyer, financier, lessor (in the case of a leasehold motel) and anyone else involved in the process.

If a full and complete marketing campaign is run then a vendor can be satisfied that they have given their motel every opportunity to sell no matter whether the market is strong or not.

Related Articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Check Also
Back to top button
WP Tumblr Auto Publish Powered By :
Would love your thoughts, please comment.x