Frequently Asked Questions

No. While Mumford Company works with both buyers and sellers, we only represent the seller in the hotel sales process.

Agency

In compliance with Real Estate Board regulations, parties to transactions involving real estate should understand the unique and valuable role that real estate brokers and their agents play in marketing real estate. That role has been defined over the years by both law and custom. The following is a brief explanation of that role:

• Brokers and their agents may be employed to represent any party to a real estate transaction.
• Customarily, unless a purchaser has an agreement with a broker that the broker and the broker’s agent will represent the buyer’s interests, the broker and broker’s agents will represent the listing broker and the seller.
• The person the broker and the broker’s agent represent is usually referred to as the “client”, and the other party is usually referred to as the “customer”.
• The broker and the broker’s agents owe the client duties of disclosure, loyalty, and faithfulness. At the same time, brokers and their agents are required to treat all parties to a transaction fairly.
• If a broker represents the seller, the broker and the broker’s agents may still provide buyers, as customers, with information about properties and available financing, may show them properties, and may assist them in preparing an offer to purchase a particular property.
• Brokers and their agents have a duty to respond accurately to customers’ questions, to disclose to customers material information about a particular property of which they have knowledge, and to submit all written offers to purchase, sell, option, or lease a property promptly to both customers and clients without discrimination.

The Mumford Company is the listing broker for the property. We represent the seller and will be paid a commission by the seller.

Mumford Company uses a team approach when estimating property value. Brokers from across the country review all deals to provide a balanced valuation. All factors affecting value are considered when pricing a hotel, including but not limited to:

• Age and condition of the property
• Location
• Branding possibilities

We leverage our collective 150+ years of market experience in analyzing current capitalization rates, replacement cost, and multiple of gross analysis.

Each seller has primary contact with a specific broker at Mumford Company to foster a strong working relationship throughout the process. That broker may also involve other Mumford Company brokers to assist with market research and property tours, and will utilize sales analysts to prepare marketing materials.

Once the property is actively listed for sale, all brokers from all Mumford Company offices take on the task of finding buyers, giving the seller and property true national exposure. Professionals within the marketing and administrative departments also assist with advertising and electronic/web-based promotions.

Sale completion times vary widely due to a number of factors, including:

• Geographic region
• Local market conditions
• Product type
• Franchise issues
• Financing climate

Generally, from the initial market exposure, the quickest transactions require 90 days, but may take longer depending on circumstances. Mumford Company generally suggests at least thirty days on the open market before accepting any discounted offers.

There are a variety of ways to market hotels, with maximum market exposure being the most preferred approach. The “bidding environment” created by this method often yields the best results.

A minimum amount of information is required to generate interest, and significantly more is required for potential purchasers to make educated offers. This includes:

• Basic site location details
• Physical structure information
• Operating statistics
• Profitability data

Mumford Company associates work with individual sellers to determine:

1. What information is available to the general public via the website
2. What is shared in marketing materials
3. What is provided during the due diligence phase

Occasionally, sellers prefer to reveal only limited information prior to potential purchasers executing a Confidentiality Agreement. This method is usually reserved for more complicated or otherwise sensitive transactions.