Hotel brokers control an estimated 60-70% of listed hotel transactions. If you want consistent deal flow in the hospitality space, broker relationships are not optional. They are essential infrastructure for your acquisition strategy.
But most first-time hotel buyers approach brokers the wrong way. They send a vague email saying they are "interested in hotels" and wonder why they never hear back. Building productive broker relationships requires understanding what brokers want, how they operate, and what separates the buyers they call first from the ones they ignore.
This guide covers the full broker relationship lifecycle: finding the right brokers, making a strong first impression, building trust over time, and eventually getting on the short list for off-market opportunities.
Why Brokers Matter in Hotel Acquisitions
Unlike residential real estate, where properties are listed on the MLS and anyone can find them, hotel deal flow is heavily intermediated. Brokers serve as gatekeepers for several reasons:
- Confidentiality. Hotel sellers often do not want their staff, guests, or competitors to know they are selling. Brokers manage the process discreetly.
- Qualification. Sellers rely on brokers to screen buyers and filter out tire-kickers. A hotel listing that goes to 500 unqualified inquiries is worse than one that goes to 10 qualified buyers.
- Market knowledge. Experienced hotel brokers understand valuations, cap rates, market trends, and buyer expectations in ways that generalist agents do not.
- Off-market access. The best deals often trade quietly between a broker's network before ever being publicly listed. Getting access to these deals requires an established relationship.
Types of Hotel Brokers
Not all hotel brokers are the same. Understanding the landscape helps you target your relationship-building efforts effectively.
National Firms
Companies like Marcus & Millichap, CBRE Hotels, JLL Hotels, and Colliers have dedicated hospitality divisions with agents who specialize exclusively in hotel transactions. These firms handle larger deals (typically $5M+) and have extensive buyer databases. They are professional, data-driven, and process-oriented.
Best for: Buyers targeting institutional-quality properties or looking for broad market coverage across multiple states.
Regional Specialists
Regional hotel brokers focus on specific geographic areas and often have deep relationships with local owners. They tend to handle a wider range of deal sizes, including the $1M-$5M boutique hotel and micro resort segment that national firms sometimes overlook.
Best for: Buyers with a defined buy box in specific markets. These brokers often know about deals before anyone else.
Individual Brokers
Solo practitioners or small teams who specialize in hospitality. They may operate under a commercial real estate brokerage but focus their practice on hotel transactions. Their networks are personal and relationship-heavy.
Best for: Buyers who prefer a more personal relationship and are targeting smaller markets or niche property types like micro resorts and independent boutique hotels.
How to Find Brokers in Your Target Markets
Start with these strategies:
- Search hotel listings. Go to LoopNet, CoStar, Crexi, and BizBuySell. Search for hotel listings in your target markets. Note the listing broker on each one. This tells you exactly who is active in your area.
- Check national firm websites. Marcus & Millichap, CBRE, and JLL all have agent directories that let you filter by specialty (hospitality) and location.
- Attend lodging conferences. The AHLA (American Hotel & Lodging Association), state lodging associations, and regional hospitality investment conferences are where brokers network and source both buyers and sellers.
- Ask hotel owners. If you know any hotel operators in your target market, ask them who the active brokers are. Owners who have bought or sold know the landscape.
- LinkedIn search. Search for "hotel broker" or "hospitality investment sales" in your target market. Many brokers actively use LinkedIn to share listings and market insights.
The Buy Box Blueprint
Before you contact any broker, have your Buy Box Blueprint ready. This means you can articulate: your target market(s), property type (boutique hotel, micro resort, cabins, glamping), price range, unit count, and return targets. A buyer with a clear buy box gets taken seriously. A buyer who says "I am open to anything" gets forgotten.
What Brokers Want from Buyers
Brokers earn commissions only when deals close. This single fact drives everything about how they evaluate and prioritize buyers. Here is what they are looking for:
Proof of Funds
You do not need all the capital in your personal bank account, but you need to demonstrate that you have a credible path to funding. This could be a bank statement showing liquid capital, a pre-qualification letter from a DSCR lender, or documentation of your investor network and capital-raising capability.
A Clear Buy Box
Brokers want to match buyers to deals efficiently. If you can tell a broker "I am looking for 10-30 unit independent boutique hotels in the $2M-$5M range within a 90-minute drive of Austin, with positive trailing NOI," they can immediately think of properties that fit. Vague criteria waste their time and yours.
Responsiveness
When a broker sends you a deal, respond within 24 hours. Even if the answer is "this does not fit my criteria because X," that response builds trust. Brokers track who responds and who ghosts. The responsive buyers get the next call.
Ability to Close
This is the big one. Brokers want buyers who will follow through from LOI to closing table. Demonstrating this means:
- Having your team in place (attorney, lender, CPA)
- Submitting professional LOIs (not casual emails)
- Meeting due diligence deadlines
- Communicating proactively about any issues
Making a Strong First Impression
Your first outreach to a broker sets the tone for the relationship. Here is how to make it count:
- Lead with your buy box. Open with what you are looking for, not your life story. "I am an active hospitality investor looking for independent boutique hotels in the Texas Hill Country, $2-5M range, with day-one NOI."
- Share your credentials briefly. Mention relevant experience: properties owned, deals closed, portfolio size. If you are a first-time hotel buyer, mention your STR portfolio or other real estate experience.
- Demonstrate financial readiness. "I have $500K in available equity and a pre-qualification from [lender name] for up to $3.5M" is more powerful than "I am well-funded."
- Ask about their current inventory. This shows you are ready to act, not just exploring. "Do you have anything that fits this criteria currently or coming to market soon?"
- Follow up with a one-page buyer profile. A simple PDF or email with your buy box, proof of funds summary, and team members (attorney, lender) makes you memorable and easy to share internally at their firm.
Building the Relationship Over Time
The first conversation is the introduction. The real value comes from consistent engagement over months and years. Here is how to stay top of mind:
- Respond to every deal they send. Even if it is a pass, explain why. "Too many rooms for our criteria" or "cap rate does not work at that price" shows you are evaluating deals seriously.
- Share market intelligence. If you come across data, trends, or insights about their market, share it. This positions you as a peer, not just a lead in their database.
- Submit LOIs on properties that fit. Nothing builds broker credibility like seeing you move through the LOI process professionally. Even if the deal does not close, the broker sees you are real.
- Close a deal. Once you close your first deal through a broker, the relationship transforms. You become a proven buyer, and they start bringing you opportunities before anyone else sees them.
- Send updates. A quarterly email updating the broker on your portfolio, acquisition activity, and evolving buy box keeps you in their rotation.
Getting on the "A List" for Off-Market Deals
Every experienced hotel broker has a mental (or actual) list of buyers they call first when a new deal comes in. Getting on that list is the ultimate goal of your broker relationship strategy.
What separates A-list buyers from everyone else:
- Track record. Closed at least one deal through the broker or in the market
- Speed. Can evaluate a deal and provide feedback within 48 hours
- Certainty. Financing is lined up, team is ready, entity is formed
- Repeat potential. Broker knows you will buy again, making the relationship worth cultivating
- Professionalism. Clean communication, follows through on commitments, no drama
Building to this level takes time. For most buyers, it requires 3-6 months of consistent engagement and at least one completed transaction. But once you are on the list, deal flow becomes much more consistent.
Broker Commission Structures
Understanding how brokers get paid helps you understand their incentives:
| Deal Size | Typical Commission | Who Pays |
|---|---|---|
| Under $2M | 5-6% | Seller (typically) |
| $2M - $5M | 4-5% | Seller (typically) |
| $5M - $10M | 3-4% | Seller (typically) |
| $10M+ | 2-3% | Seller (typically) |
If a buyer's broker is involved, the commission is usually split between the listing broker and the buyer's broker. In some cases, the buyer may pay their broker separately, so clarify this upfront.
When to Use a Buyer's Broker
A buyer's broker represents your interests exclusively. Consider using one if:
- You are new to hotel acquisitions and want guidance through the process
- You are searching across multiple markets and need someone to aggregate deal flow
- You want someone to negotiate on your behalf
- You do not have established broker relationships yet
However, many experienced hotel buyers prefer working directly with listing agents. This can create a more direct relationship with the seller's side and avoids any perception of conflicting loyalties. As you build your own broker network over time, the need for a dedicated buyer's broker often decreases.
Common Mistakes When Working with Brokers
- Wasting their time with vague criteria. "I might be interested in a hotel someday" gets you nowhere. Have your buy box defined before reaching out.
- Not following up. A broker sends you a deal and you never respond. That is the fastest way to get removed from their list.
- Overcommitting and underdelivering. Telling a broker you will submit an LOI by Friday and then going silent destroys credibility.
- Trying to go around the broker. If a broker brought you the deal, they are part of the deal. Attempting to contact the seller directly to cut out the broker's commission is unethical and will burn the relationship permanently.
- Only reaching out when you need something. The best broker relationships are two-way. Share value, not just requests.
- Ignoring smaller brokers. The biggest deals do not always come from the biggest firms. Regional and individual brokers often have the best micro resort and boutique hotel deal flow.
Building a strong broker network is one piece of a comprehensive deal sourcing strategy. For the other piece, direct outreach to hotel owners, read our guide on finding off-market hotel deals. And if you are just getting started with your hotel investment thesis, the 5-Day Micro Resort Buyer Challenge walks you through the full acquisition framework from buy box to LOI.
Frequently Asked Questions
How do I find hotel brokers in my target market?
Start by searching commercial real estate platforms like LoopNet, CoStar, and Crexi for hotel listings in your target markets, then identify the listing brokers. Check the hospitality divisions of national firms like Marcus and Millichap, CBRE Hotels, and JLL Hotels. Attend regional hospitality conferences and lodging association events. Ask other hotel owners and operators for broker referrals. LinkedIn is also effective for finding brokers who specialize in hospitality transactions in specific markets.
What do hotel brokers look for in a buyer?
Hotel brokers prioritize buyers who can close. Specifically, they want to see proof of funds or a clear financing strategy, a defined buy box (property type, price range, market), responsiveness to communications, relevant experience or a credible team, and a track record of closing deals. Brokers earn commissions only when deals close, so they invest their time in buyers who demonstrate the ability and willingness to follow through.
How much commission do hotel brokers charge?
Hotel broker commissions typically range from 3-6% of the sale price, with the percentage often decreasing as the deal size increases. On a $3 million hotel, expect 4-6%. On a $10 million property, it may be 2-3%. In most cases, the seller pays the commission, which is split between the listing broker and the buyer's broker (if one is involved). Some brokers also charge a retainer or minimum fee for smaller transactions.
Should I use a buyer's broker for hotel acquisitions?
A buyer's broker can be valuable if you are new to hotel acquisitions. They provide market intelligence, identify off-market opportunities, and can negotiate on your behalf. However, they add a commission layer (typically split from the seller's commission, but sometimes paid by the buyer). For experienced buyers with established broker networks, going without a buyer's broker and working directly with listing agents is common. The key factor is whether the buyer's broker adds enough value in deal sourcing and negotiation to justify their fee.
How long does it take to build a productive broker relationship?
Building a productive hotel broker relationship typically takes 3 to 6 months of consistent engagement. The first phase involves introducing yourself, sharing your buy box, and responding promptly to any deals they send. The relationship deepens when you demonstrate competence by providing thoughtful feedback on deals, submitting professional LOIs, and following through on commitments. Once a broker sees you as a serious, reliable buyer, they begin sending you deals before they hit the open market.