How Long Does It Take to Sell a Hotel in Texas?
If you own a hotel in Texas and you’re thinking about selling, there’s one big question that usually comes up first: how long does it take to sell a hotel in Texas? The answer isn’t as simple as tossing out a number. Sometimes it’s a few months. Other times, it drags on for a year or more.
But here’s the thing — hotels are a different breed compared to other commercial properties. They’re part real estate, part operating business. That makes selling them both exciting and a little tricky. Let’s walk through what impacts the timeline and what you can do to speed things up.
Why Selling a Hotel Takes Longer Than Other Properties
When you put a small office building or retail space up for sale, buyers mainly care about location, rental income, and condition of the property. With hotels, buyers also have to dig into:
- Occupancy rates
- Average daily rates (ADR)
- Revenue per available room (RevPAR)
- Franchise or flag agreements
- Staffing and operational costs
All of these numbers can either attract or scare off buyers. And getting that info together? It takes time.
Typical Timeline for Selling a Hotel
So, let’s answer it straight: how long to sell hotel in Texas?
On average, a hotel sale in Texas can take anywhere from six months to a year. Smaller motels in rural areas may sell faster if priced competitively, while larger branded hotels in big cities might take longer because the deal is more complex.
Here’s a rough breakdown:
- Preparing for sale – 1–3 months
Gathering financials, cleaning up records, addressing small repairs. - Marketing the property – 3–6 months
Reaching out to brokers, investors, or companies that specialize in hotel acquisitions. - Negotiations & due diligence – 2–4 months
Buyers will scrutinize everything from your books to your brand agreements. - Closing – 30–90 days
Legal paperwork, financing, and transfer of ownership.
Of course, that’s just an outline. Some hotels sell in 90 days. Others? Well, let’s just say patience is required.
Factors That Affect How Long It Takes
1. Location, Location, Location
A hotel in downtown Austin or near a major highway in Dallas will usually attract interest faster than one off the beaten path. Tourist destinations like San Antonio, Galveston, or Corpus Christi also tend to move quicker.
2. Hotel Size and Type
- Boutique hotels can appeal to niche investors but may take longer if the buyer pool is limited.
- Branded hotels with strong franchise agreements often sell faster but also involve more paperwork.
- Older motels might attract investors looking for value-add opportunities.
3. Financial Health
If your occupancy rates are high and your revenue trends are solid, buyers feel more confident. Weak financials? That doesn’t mean you can’t sell, but it may take longer to find the right investor.
4. Market Conditions
Interest rates, travel demand, and even broader economic trends can all influence timelines. For example, during a tourism boom, hotel sales often move much faster.
5. Pricing Strategy
Price too high, and the property will sit on the market. Price too low, and you risk leaving money on the table. Getting a realistic valuation from a broker or advisor makes a huge difference.
Should You Fix Up the Hotel Before Selling?
One of the most common questions sellers ask is whether they should renovate before putting the hotel on the market. The answer? It depends.
If it’s just cosmetic stuff — paint, landscaping, minor repairs — those updates can help you attract better offers without much delay. But big renovations (like replacing all the HVAC units or remodeling rooms) might not pay off if you’re trying to sell quickly.
Some buyers, especially value-add investors, actually prefer to buy hotels they can upgrade themselves.
Selling As-Is vs. Strategic Updates
If your main goal is speed, selling as-is can save months of time and headaches. There are companies that buy hotels in their current condition and close quickly. For example, Commercial Real Estate Star specializes in hotel acquisitions and can help you skip the drawn-out process of traditional listings.
If you’ve got a little more time, making selective updates to improve curb appeal or guest experience can increase the number of interested buyers.
Tips to Speed Up the Sale
- Get your financials in order. Clear, detailed reports make you look more professional and save buyers weeks of due diligence.
- Hire the right broker. Someone experienced in hotel sales can connect you with serious buyers faster.
- Be realistic about pricing. Overpricing is one of the biggest reasons hotels linger on the market.
- Market aggressively. Don’t just stick a listing online. Target hotel investment groups, franchisees, and specialized buyers.
- Stay flexible. The more open you are to deal structures — seller financing, management agreements, etc. — the quicker a deal might come together.
Common Missteps That Delay the Sale
Let’s be real for a sec. A lot of hotel owners unintentionally slow down their own sales. Here are some mistakes to avoid:
- Not disclosing issues upfront (buyers will find out anyway).
- Waiting until the last minute to gather financial documents.
- Refusing to budge on price in a soft market
- Ignoring simple fixes that make the property more presentable.
Even small things — like letting landscaping get overgrown — can turn off a potential buyer before they even step inside.
How Long to Sell Hotel in Different Texas Markets
- Austin – Tech growth + tourism = stronger demand. Sales here tend to move on the shorter side of the timeline.
- Dallas-Fort Worth – Lots of investor interest, but higher competition, so expect 6–12 months.
- Houston – Oil & gas economy can impact timelines. Some areas move fast, others slow.
- San Antonio – Tourism-heavy market. Well-run hotels often sell quicker here.
- Small towns – Motels and independent hotels can sell fast if priced right, but buyer pools are smaller.
Usually 6–12 months, depending on location, size, financials, and market conditions.
Yes, many investors and hotel buyers prefer as-is properties so they can handle renovations themselves.
Often, yes. Well-known franchises with strong occupancy numbers usually attract more buyers.
It’s a good idea. Brokers with hotel experience know where to find serious buyers and can save you time.
Selling directly to a company that buys hotels, like Commercial Real Estate Star, is usually the quickest route.
Final Word
So, how long does it take to sell a hotel in Texas? There’s no one-size-fits-all answer. On average, you’re looking at 6–12 months, but the actual timeline depends on your location, financials, pricing, and strategy.
If speed is your top priority, selling to a specialized buyer like Commercial Real Estate Star might be your best bet. If you’ve got more time and flexibility, traditional marketing could land you a higher price.
Either way, being prepared, realistic, and proactive is what keeps the process from dragging on longer than it has to.
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