The previous owner intended on redeveloping the site to condos, and in doing so they caused significant damage to many of the units with sub-standard renovations. The lender foreclosed and leased the hotel to managers who were not locally based, and the property was underperforming.
We profiled the most likely buyer as local/regional owner operators, and ran a southeast regional marketing campaign into an auction event. We ran a traditional reserve auction, recommending that the lender/seller price the reserve at land value to encourage bidding. We also communicate the reserve price to the market. We received interest from 8 regional operators, creating demand and competition which solicited 22 offers.