Hotel/ motel valuation

[Isaiah N.]

Need help on evaluating a deal on a motel. 

I’ve made a list of information to request from the agent, but want to make sure I’m not forgetting anything. Here is what I’ve come up with so far:

Gross income/NOI for the last 3 years, and expense breakdowns, ADR, RevPar, Average occupancy, Cap rate, any deferred maintenance.

Are there any specific tax forms I should request? What other info should I request? 

What numbers are most important? And what numbers would it take to make the deal work? 

What I know so far: 

15 rooms +managers suite, $300,000 asking price. Property tax a little over$3000 a year.Has been on the market over 6 months. It’s in a rather rural area, a little off a highway. The closest motels are 10 miles in both directions, with larger cities/motels 20 Miles in each direction. I believe the owner is out of state, as am I, but I have parents/siblings 45 minutes away.

Currently only offers bookings by phone, not even email. I feel offering online bookings would increase revenue.

The only area of concern I’ve gathered so far is the current manager. It has a 4 star rating on TripAdvisor, and 3 star on google. Most of the poor reviews are due to the manager. Multiple reviews say he is too interrogative, and yells in person and over the phone. I might’ve worried if it would be a hassle to get him off the property peacefully and train a new manager.

I want to send an email to the agent, but I want to make sure I’m asked my th right questions. Thank you for your help!