For investors · Hotels · Condotels
Hotel Due Diligence for Acquisitions of $10M and Up
One deal. Five layers. One defensible next decision. AI accelerates the review. A 30-year hotelier interprets the exceptions.
Start the free scan30 minutes refers to the focused analyst review after the required documents are accepted. Delivery is within two business days.
The problem
What buyers miss in the P&L and the STR report.
- Expense lines normalized in the seller forecast without supporting evidence.
- CapEx reserves that do not match the physical scope.
- ADR growth assumptions running ahead of the comp-set case.
- Index recovery assumed without a documented sales plan.
- Labor ratios drifting while occupancy holds steady.
Our framework
Five lenses: Market, Financials, Asset Condition, Legal, Returns.
- Market20%
- Financials30%
- Asset Condition20%
- Legal10%
- Returns20%
What you receive
The free scan finds smoke. The Decision Card tests the fire.
1. Free red-flag scan
A limited screen of your P&L and STR summary, delivered within two business days.
2. Decision Card
Five-layer scorecard, key risk flags, core return metrics and a plain-English human verdict. See pricing.
Illustrative sample · Fictional property
A sample of the red flags we catch.
Insurance reset is not fully reflected.
The fictional TTM insurance expense increased 38%, while the seller forecast assumes partial normalization without supporting evidence.
CapEx reserve appears insufficient.
The fictional preliminary scope indicates $2.4M of near-term work, but the underwriting reserve includes only $1.1M.
ADR growth exceeds the market case.
The fictional forecast assumes 8.5% ADR growth against a 3.2% comp-set case.
Labor efficiency is moving the wrong way.
The fictional labor ratio deteriorated by 180 basis points despite stable occupancy.
Index recovery is unproven.
The fictional RevPAR index is 93; the model assumes recovery above 100 without a documented sales plan.
Our experience
Three decades on the owner and operator side.
- 34+ hotels advised through Saffire Hospitality since 2020 across the US and Europe.
- Retained by Finansbank as due-diligence consultant on the Swissotel Istanbul purchase.
- Worked directly with Hillside Su’s owner from 2002–2005, from planning through sale.
- Helped convert a historic building into a branded Hilton asset.
Questions
Due diligence FAQ
What deal size do you review?
Hotel and condotel acquisitions with a purchase price of $10M or more.
What do I send first?
A recent P&L and STR summary. A full data room is not required for the free scan.
Is the free scan a full underwriting?
No. It is a limited red-flag screen. The Decision Card is the paid next step that tests the findings across all five lenses.
Does AI make the decision?
No. AI helps organize and test the information. A senior hotelier reviews the exceptions and makes the final call on paid work.
How fast is delivery?
The free scan is delivered within two business days of accepting the required documents.