Our Acquisition Process: How We Evaluate and Acquire Motels

The Travellers Group acquisition process follows a structured sequence designed to be transparent for the vendor, efficient in the timeline it requires, and respectful of the commercial sensitivity that the sale consideration creates for the property, the staff, and the community whose accommodation the property provides. The process moves from the initial confidential conversation through the information exchange, the site inspection, the offer, the due diligence, and the settlement in a timeline that typically spans 60 to 120 days depending on the transaction's complexity and the parties' circumstances.

Stage 1: Initial Conversation

The process begins with the confidential conversation — by phone, video call, or in person — that establishes whether the property's profile aligns with Travellers Group's investment criteria and whether the vendor's circumstances, timeline, and expectations align with the transaction structure that Travellers Group offers. The conversation covers the property's general characteristics: location, room count, freehold or leasehold tenure, the demand segments it serves, the approximate financial performance, and the vendor's reason for considering sale. No detailed financial information is exchanged at this stage. No obligation is created. The conversation's purpose is to determine whether the mutual interest exists that justifies the more detailed assessment that the next stage involves.

Stage 2: Information Exchange Under NDA

If mutual interest is established, the parties enter a non-disclosure agreement protecting the commercial information that the assessment requires, and the vendor provides the detailed financial and operational data: the profit-and-loss statements for the preceding three years, the occupancy and revenue data, the capital-expenditure history, the lease terms or title details, the staffing structure, the corporate-account relationships, and the operational details that the valuation methodology requires as the inputs that the financial model analyses and that the comparable-transaction evidence contextualises.

Stage 3: Site Inspection and Offer

The site inspection evaluates the physical condition, the improvement potential, the market position, and the operational characteristics that the financial data alone does not reveal — the maintenance backlog's extent, the room condition's alignment with the Travellers Standard's requirements, the competitive environment's current and anticipated state, and the improvement investment that the property's elevation to the network standard would require. The offer follows: the price based on the financial analysis, the physical assessment, and the comparable-transaction evidence; the terms specifying the settlement timeline, the conditions, and the arrangements that the parties' circumstances require.

Stage 4: Due Diligence and Settlement

Due diligence follows offer acceptance — the standard commercial verification: title search, building and pest inspection, environmental assessment, financial verification, legal review, and the specific investigations that the property's characteristics require. Settlement occurs on the agreed terms. We settle in cash. We do not require vendor financing. We accommodate leaseback arrangements where the vendor's transitional circumstances require continued occupation during the handover period.