Selling a Hotel or Motel in Alberta

1. Define the sale perimeter and authority

Confirm the registered and beneficial owners, operating entity, property owner, signing authority and any shareholder, partner, lender, franchise, management, estate or court approvals. State whether the proposed transaction involves shares, operating assets, real estate or coordinated agreements.

Schedule included and excluded land, buildings, furniture, fixtures and equipment, inventory, vehicles, intellectual property, reservation accounts, deposits, contracts, licences and working capital. Legal and tax advisors should define the structure before marketing materials imply a fixed answer.

• Legal seller and authority
• Owned real estate
• Operating entity
• Furniture, fixtures and equipment
• Franchise or management rights
• Included and excluded working capital

2. Establish the room and property record

Reconcile marketed room count, room types and operating inventory to approved plans, permits, property records, franchise or management records and observed condition. Separate guestrooms from suites, staff or manager units, long-term units, meeting rooms and rooms that are out of order or unavailable.

Organize current title, surveys or plans, registered interests, assessment and tax records, zoning or land-use status, permits, occupancy records, access, parking and material site rights. Do not use the civic address or room count as a substitute for legal and building verification.

3. Reconcile operating performance

Prepare accountant-supported monthly and annual room revenue, food and beverage, other operated departments, occupancy, average daily rate, available-room inventory and revenue per available room for the selected periods. Reconcile source systems, financial statements, tax returns and general-ledger records.

Separate reported results from owner adjustments, forecasts and buyer synergies. Explain closures, renovation downtime, displaced demand, group business, government or crew contracts, complimentary rooms, cancellations, chargebacks and other items affecting period comparability.

4. Present expenses and capital honestly

Organize departmental and undistributed operating costs, labour, utilities, repairs, insurance, property tax, management and franchise fees, reservation and loyalty costs, marketing, technology, leases and other fixed charges. State which costs are paid to related parties or omitted from seller reporting.

Prepare a dated capital history and forward schedule for rooms, roof, envelope, mechanical, electrical, plumbing, elevators, life safety, parking, pools, kitchens and public areas. A reserve assumption does not replace a property-condition review or known required work.

5. Separate flag, management and property value

Index franchise, licence, management, reservation, marketing and related agreements with term, renewal, transfer or change-of-control provisions, fees, guarantees, defaults, territory and termination consequences. State whether brand continuation is assumed, conditional or not offered.

A property improvement plan, brand approval or management transition can materially change capital, timing and buyer eligibility. Do not market a flag as automatically transferable or describe a preliminary PIP estimate as a final brand requirement.

6. Build the licence and compliance register

List municipal business, development and occupancy records; Alberta tourism-levy registration and filings; AHS food and public-health records; AGLC liquor licensing; safety-code permits and inspections; pool, elevator, fire and other facility requirements; and any sector-specific approvals.

Alberta currently states that the tourism levy increased to 6% for qualifying bookings after March 31, 2026, with detailed transitional rules. Reconcile the operator's registration, returns and assessments, and verify current treatment with TRA and tax advisors.

7. Prepare environmental and physical evidence

Organize environmental reports, tanks, fuel, dry-cleaning or laundry chemicals, spills, asbestos or hazardous-material information, water and wastewater records, wells, septic systems and neighbouring-use evidence. Search current provincial environmental records using the correct parcel and facility identifiers.

Public records do not establish that a site is clean. Qualified environmental, building, structural, mechanical, electrical, fire and other professionals should define property-specific diligence and reliance.

8. Control guest, employee and commercial information

Use an anonymous teaser, confidentiality controls, buyer qualification and staged data-room access. Aggregate guest, employee and contract information until a lawful transaction purpose requires more detail.

Alberta's PIPA permits limited personal-information disclosure for a business transaction under statutory requirements; it does not authorize unrestricted release of guest profiles, identification, payment information, employee files or security records.

9. Qualify buyers and compare the whole offer

Assess buyer entity, beneficial ownership, hotel operating experience, franchise eligibility, equity, financing, lender engagement, management plan, professional team and intended structure. Match disclosure and exclusivity to demonstrated capacity.

Compare real estate and business price, inventory and working-capital adjustments, deposits, financing, franchise and management approvals, diligence, environmental conditions, PIP treatment, transition services, employees, closing and post-closing exposure. The highest headline price may not provide the strongest execution path.

10. Coordinate tax, compliance and transition

CRA states that commercial real-property sales are generally taxable unless an exemption applies and separately describes a possible GST/HST election for qualifying sales of a business or part of a business. Tax advisors should determine structure, allocations, registration, elections and filing.

FINTRAC requirements apply to the licensed real-property transaction. Build one closing matrix for title, business assets or shares, lender discharges, tourism levy, GST, WCB, licences, franchise or management consent, reservations, deposits, keys, systems, inventory, employees and guest communications. This guide is educational and is not legal, tax, accounting, privacy, appraisal, business-valuation, environmental, engineering, financing or regulatory advice.