You’ve decided what your dream hotel looks like and outlined the criteria for your search. But what if the hotels currently on the market don’t meet your vision? 

In such cases, you may consider reaching out directly to hotel owners who haven’t listed their property for sale. But how do you identify those owners who may be open to selling and have a hotel with untapped potential?

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One method is to analyze the gap between Booking.com ratings:

• Location
• Value for money
• Overall rating

By identifying properties with a great location but low guest satisfaction, you can target hotels that are ripe for improvement—and potentially convince the owners to sell.

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The Rating Gap

On OTA platforms like Booking.com, hotels are typically rated across multiple categories such as cleanliness, comfort, facilities, location, and value for money.

When there are positive reviews for a hotel’s location but a low value for money score, it often signals that guests see potential in the setting but feel the price doesn’t match the experience provided. 

Here is one opportunity uncovered from a quick search on Booking.com, an 18-bedroom hotel in the centre of Porto:

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Why It Matters

Low value for money and overall rating often signal that the hotel’s current owner has stopped investing in the property. This lack of investment can be due to various reasons—perhaps they’re nearing retirement, shifting focus to another project, or simply fatigued from running the business. The reluctance to continue putting money into renovations, services, or upgrades can reflect a readiness to move on. Identifying properties with this profile can provide a unique opportunity for buyers. 

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Why Not Sell

But why do hotel owners who are open to selling their property choose not to put it on the market? There are several reasons for this hesitation. Some owners may be uncertain about their decision to sell or prefer an off-market approach to protect their brand from potential negative perceptions.

They might also believe that current market conditions aren’t favorable for a sale. Emotional attachment, particularly among family-owned businesses, can complicate the decision. Additionally, many owners are preoccupied with the day-to-day operations of their hotels and may lack the time or resources to actively pursue a sale.

By understanding these factors, potential buyers can better identify opportunities and engage with owners who may be open to selling, even if their properties aren’t actively listed.

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The Opportunity

Hotels in prime locations, whether in city centers or popular tourist destinations, tend to have high demand. Enhancing the perceived value of these properties often involves addressing low-hanging fruit that doesn’t require a large investment. Simple upgrades like offering high-quality bedding, vegan breakfast options, strong WiFi, and self check-in can significantly boost the value for money score without the need for extensive renovations. These small, accessible improvements can greatly enhance guest satisfaction and overall profitability.

At Buythathotel.com, we use AI to analyze all public reviews of a hotel on Booking, Airbnb, and Google Maps, so you can see if guests complain about minor issues like poor WiFi (easy fix) or more significant problems like frequent water outages (which could be a costly issue for the new owner). 

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Identifying Properties

If you’re searching for a hotel for sale in Spain, Portugal, or Costa Rica, you can begin your journey at Buythathotel.com. We track public listings on real estate websites, curate them, and do some detective work to determine their future potential. 

Haven’t found what you’re looking for?

Expand your search by exploring hotels that aren’t yet on the market. Research properties in your target area and analyze their ratings across various OTA platforms. Consider leveraging data scraping to review thousands of properties and monitor trends over time, and hiring a virtual assistant to support you with outreach. This approach will allow you to uncover undervalued hotels, identify hidden gems, and act quickly when the right opportunity comes.

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We recorded a whole podcast episode about this topic, where we discussed David's Triangle and other approaches for finding off-market deals.

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Conclusion

Identifying potential hotels before they officially hit the market can increase your chances of finding a property that fits your criteria. By analyzing ratings on OTA platforms, you can uncover hotels with untapped potential—those in great locations but with lower guest satisfaction ratings.

Reaching out directly to hotel owners who may be willing to sell, even if their properties aren’t listed, can take you one step closer to your dream hotel. Many owners hesitate to sell for various reasons, such as emotional attachment or uncertainty about the market. Understanding their motivations can help you approach them effectively and present solutions that resonate with their needs.