Do Online Reviews and Booking Platforms Matter When Selling a Melbourne Motel?

The physical property and financial accounts are only part of a modern motel operation.

A purchaser may also investigate what guests see when they search for the business online.

That can include review profiles, the motel's website, direct-booking systems, social media, online travel agency relationships and the broader digital reputation built by the current operator.

Reputation Can Form Part of Buyer Due Diligence

Australian Government guidance on buying an established business specifically notes that an existing business may come with a poor public image, and recommends researching the business's reputation before purchase. business.gov.au

For a Melbourne motel seller, this means online reputation should not be ignored until after an offer has been accepted.

Review what is currently visible to a prospective purchaser.

Do Not Try to Manufacture Better Reviews

The solution to weaker reviews is not to create artificial positive feedback before selling.

The ACCC states that businesses must not create fake or misleading reviews or arrange for other people to do so. It also warns against suppressing genuine negative reviews in a way that misleads consumers. ACCC

A credible buyer will be more interested in understanding the real operating history than in a sudden unexplained burst of five-star ratings.

Explain Genuine Improvements

If reviews previously identified recurring problems and the business has since addressed them, document the changes.

For example, completed maintenance, changes to housekeeping systems or upgraded guest procedures may be relevant.

The seller can explain what changed without claiming that future reviews or ratings are guaranteed to improve.

Identify the Digital Assets in the Sale

Business.gov.au recommends sellers clearly identify exactly which assets form part of a business transaction, including intangible assets such as goodwill and brand recognition. business.gov.au

For an accommodation business, the sale documentation should clarify what happens to the business name, website, domain, telephone numbers, social accounts, booking systems and other digital assets.

Do not assume that every third-party platform account or review profile is automatically transferable.

Platform terms should be checked individually.

Protect Guest Information

Booking systems can contain names, contact information, payment information and travel details.

The OAIC advises businesses covered by the Privacy Act to carefully control personal information during a business-sale due-diligence process, using de-identified or aggregated information where appropriate. OAIC

The buyer can assess the commercial value of the customer base without automatically receiving unrestricted personal guest information during early negotiations.

Digital Due Diligence Is Now Part of Business Due Diligence

A buyer purchasing a motel is acquiring more than rooms and furniture.

The reputation attached to the operating business may affect how they assess what happens from the first day after settlement.

That makes digital preparation a sensible part of the sale process.

Frequently Asked Questions

Can a seller remove negative reviews before selling?
A business should not manipulate genuine reviews in a way that misleads consumers. ACCC guidance should be considered. ACCC

Do booking-platform accounts automatically transfer to the buyer?
Not necessarily. Each platform's terms and the transaction structure should be checked before promising that an account can transfer.

Selling a Motel in Melbourne?

Norton’s Resort Brokers can help present the physical asset, operating business and commercial story to prospective accommodation buyers.

Steven Norton — 0488 496 277
Lawrence Norton — 0415 279 807
Nortons.re@gmail.com

Disclaimer: General information only. It is not privacy, consumer-law, legal, accounting, technology, valuation or financial advice. Platform terms and privacy obligations should be checked for each transaction.