A small two-story inn with a porte-cochere entrance at golden hour

Donate a Hotel

A Hospitality Property, Reviewed on the Numbers.

Hotels, motels, inns, lodges and selected resort properties — where the franchise agreement, the PIP, the debt and the reservation book matter as much as the real estate.

Submit a Hospitality Property for Preliminary Review

A hotel is a business wrapped around a building, and the building is usually the simpler half. Brand agreements, property improvement plans, loan documents, licenses, employees and the reservations already on the books each carry the power to stop a transfer on their own. Preliminary review is built to surface the blocking issue early rather than after months of work.

What we review in this category

Limited-service and select-service hotels

Independent and boutique hotels

Motels and roadside lodging

Inns and bed-and-breakfast properties

Lodges and seasonal resort properties

Extended-stay and converted properties

Closed or non-operating lodging property

Why hospitality review is intensive

A hotel is a business wrapped around real estate. Transferring one touches brand agreements, labor, licensing, guest obligations, vendor contracts and debt documents at the same time, and any one of them can prevent a transfer. Preliminary review exists to find the blocking issue early rather than after months of work.

Mustard Farms does not operate hotels

We do not represent ourselves as a hotel operator, and nothing here implies that Mustard Farms would run the property. An accepted gift may be retained for approved charitable use or responsibly disposed of, and any continued operation would depend on professionals engaged for that purpose.

Franchise agreements and the PIP

Brand agreements typically restrict transfer, require franchisor approval, impose liquidated damages on early termination, and trigger a property improvement plan on change of ownership. The PIP is frequently the single largest number in the entire analysis, and a review that ignores it is not a review.

Debt structure

Hospitality debt is rarely simple. CMBS loans with defeasance requirements, SBA loans with their own transfer conditions, mezzanine debt, franchise comfort letters and cash-management arrangements each constrain what is possible. The loan documents are needed, not just the balance.

Employees

Staff are people with livelihoods and, in some markets, collective bargaining agreements and statutory notice requirements. Employment matters are reviewed with counsel from the beginning, and a responsible transition treats employees as a primary consideration rather than a line item.

Pending reservations and deposits

Guests have booked. Weddings and reunions have deposits down. Gift certificates are outstanding and loyalty points may be attached to the brand. Honoring, transferring or refunding those commitments is part of any responsible transition and shapes timing more than most owners expect.

Licenses, permits and environmental condition

Liquor licenses often do not transfer automatically and may be the pacing item. Food service, pool, elevator and occupancy permits are verified. Environmental review covers tanks, asbestos, mold, pool chemical storage and any prior use of the site.

Closed and non-operating properties

A closed hotel is reviewed with brand status, license lapse, system condition, vandalism risk, insurability and the cost of reopening all in view. Closure is not disqualifying, but it changes almost every assumption.

Information the review requires

Room count, room mix, building age and last renovation year.
Three years of occupancy, average daily rate and RevPAR history.
Financial statements and, where available, STR reports.
Franchise agreement: brand, term remaining, transfer terms and liquidated damages.
Management agreement, its term and any termination cost.
Property improvement plan: what the brand requires and the estimated cost.
Debt, including CMBS or SBA loans, prepayment terms and any defeasance.
Liens, mechanics claims, assessments and unpaid taxes.
Licenses and permits: liquor, food service, pool, elevator, occupancy.
Environmental issues, including tanks, asbestos, mold and pool chemicals.
Employees: count, status, union agreements and any WARN considerations.
Pending reservations, group blocks, advance deposits and gift certificates outstanding.

Questions specific to this category

A Mustard Farms initiative supporting approved Commissary Grant programs.

Organizational information, governance and the full review process are published at MustardFarms.org. Program information is at CommissaryGrant.com.

Mustard Farms does not provide legal, tax, appraisal or financial advice. Proposed gifts are subject to legal, financial, title, environmental, operational and governing-body review and written acceptance. Donors should consult independent advisers.