Hospitality
Hospitality is an operating business that happens to own a building. Underwrite it as both, or you will buy a real estate cap rate and inherit a payroll.
On the market now
Live from the Mississippi MLS. Commercial records here are thin by nature — the national marketplaces below carry the rest.
No hospitality records match in the MLS mirror today. That is normal for this asset class in Mississippi; most of it moves privately or on the national marketplaces.
A branded hotel transfers only with the franchisor’s approval, and approval almost always comes with a Property Improvement Plan — a mandatory capital list with a deadline. A $1.2 million PIP on a $6 million purchase is not unusual and is not negotiable once you sign.
Get the PIP scoped before you remove contingencies. The franchisor will provide an estimate; treat it as a floor.
Underwrite from a STR report against the competitive set, not from the seller’s occupancy claim. Ask for twelve quarters. Coastal Mississippi hospitality is seasonal and event-driven — Cruisin’ the Coast, casino calendars and hurricane season all move the numbers in ways an annual average hides.
Wind and named-storm coverage on a coastal hospitality asset can run into six figures annually, often with the wind portion placed through the Mississippi Windstorm Underwriting Association and the balance with an admitted or surplus-lines carrier. Business-interruption cover, and the waiting period on it, matters as much as the property limit.
Get quotes bound before your financing contingency expires. A lender’s insurance requirement has killed more coastal hospitality deals than price ever has.
Diligence
Bedford works this list on every hospitality transaction. Ask any broker for their version — if there is not one, that is your answer.
National inventory
Built for Ridgeland below. Use the national search to switch to Madison, Jackson, Flowood, Brandon, Gulfport, Biloxi.
Powered by Continental Brokers Inc.
Mississippi commercial property insurance has repriced sharply, and on the coast wind and flood are placed separately from everything else. Continental Brokers will quote the real building, not the seller’s expiring policy.
Powered by Continental Brokers Inc.. Bedford Realty is not an insurance agency.
Insurance products are offered and placed by Continental Brokers Inc., an independent insurance agency. Bedford Realty, LLC is not an insurance agency, does not sell insurance, and receives no commission on policies placed. Coverage is subject to underwriting approval, policy terms, conditions and exclusions.
FAQ
Usually, but only with franchisor approval and a PIP. Some brands will also require a new twenty-year term rather than an assumption of the remaining term. Get the franchisor into the conversation in the first two weeks.
Property, wind and hail (often through the wind pool in the coastal counties), flood, general liability, liquor liability if applicable, and business interruption with a realistic period of restoration. Continental Brokers, Bedford’s insurance partner, places all of it — get real numbers before you commit.
Next step
Tell us what the business has to do and by when. We will work backwards to the building, search the MLS and the national marketplaces together, and represent you on whichever one wins.
