How Owners Are Leaving Millions on the Table: A Case for North Carolina’s Hotel Market

As the hospitality market in North Carolina continues evolving, a dramatic trend has emerged. Recent analysis shows nearly 70% of hotels traded in the last 12 months sold off-market. While this off-market approach may seem appealing for buyers—often purchasing deals at a discount—hoteliers choosing this route may be sacrificing significant value, sometimes hundreds of thousands or even millions of dollars per transaction.

 

Off-Market Trades Dominate, But at What Cost?

Recent data from hotel sales across North Carolina illustrates the dominance of off-market deals. Of the 85 hotel trades recorded in the past year, a substantial majority bypassed traditional brokerage channels, reflect a market heavily biased towards unlisted “owner to owner” transactions. This trend has become even more visible when reviewing year-over-year data and looking back two or more years. Historically, the majority of deals in the region have been completed without a broker— raising questions about owner motivations and market perceptions.

 

Price Per Key With vs Without Brokers

The price per key provides a clear-lit window into the impact of professional marketing. Hotels taken through a formal listing process consistently achieve higher prices per key in contrast to their off market comparables. On average, deals closed off market typically settle for a 15% less price per key, as opposed to a fully marketed sale. Brokered sales frequently involve strategic marketing, targeted outreach, and competitive bidding, directly translating to higher valuations. By contrast, off-market trades reflect negotiated discounts and a smaller pool of potential buyers.

 

Why Do Owners Often Avoid Brokers?

Some of the reasons cited for sidestepping the formal hotel sales process include:

• Reluctance to pay broker commissions/inability to see value of representation
• Concerns about confidentiality (e.g., management, staff, or competitors learning of a possible sale)
• Desire for quick closings or discreet offloads
• Fear that investors may not achieve promised returns if the true value is exposed

But the data suggests that these perceived savings are often outweighed by lost sale proceeds and missed exposure to motivated buyers.

 

The Broker’s Role: Creating True Market Value

Today, more than ever, brokerage professionals are crucial in the North Carolina hotel market— by “marrying buyers” who have recently shown active interest in the space. It is essential to have a trustworthy contact who has a proven track record of transacting and the ability to share off market opportunities with confidence. Matthews™ brokers add real value by:

• Positioning and presenting properties to enhance appeal
• Creating broad exposure to drive competitive bidding
• Managing confidential marketing strategies when needed
• Negotiating to maximize seller outcomes
• Providing real-time insight into pricing trends and buyer activity
• Guiding owners through a seamless transaction process from start to finish

With growing evidence showing hotel owners consistently leaving money on the table, it’s clear that professional marketing and a strategic listing approach provided by the right brokerage, are no longer optional, they’re essential. A well-executed sales process not only maximizes price per key, but also ensures sellers unlock the full value of their asset. This is done so by reach the right buyers, creating competition, and highlighting the property’s unique investment potential.

 

The Bottom Line

Owners electing to sell off-market are leaving substantial amounts of money on the table. In a market where the difference can mean hundreds of thousands, even millions of dollars per hotel, it’s time for sellers to reconsider the true cost of “saving” on commissions. Professional brokerage and a formal listing process not only maximize returns but also ensure a level playing field for all parties.