Independent Boutique Hotels and Hospitality Searchers

Hi fellow searchers, Our team is actively exploring the independent boutique hotel space, specifically targeting properties in the $1M-$4M range, typically with fewer than 40 rooms. We're focused on high-barrier-to-entry, drive-to leisure markets, particularly in the Northeast USA. What we're observing on the ground aligns with a broader sentiment: there aren't many "fire sales." Instead, we're finding more "stressed" sellers – often multi-generational mom-and-pop operators ready for retirement – rather than truly "distressed" financial situations. This is especially true given how well hotels in these desirable, leisure-focused areas have rebounded since 2020. This leads to a few questions for the community, especially those with recent experience in this specific segment: 1) Valuation & Acquisition: For independent boutique hotels of this size and price range in high-demand, limited-supply markets, how are you approaching valuations? Are you observing cap rates or EBITDA multiples that align with typical searcher acquisitions (e.g., 4-6x EBITDA, or 8-11% pro-forma cap rates as discussed in previous threads)? What are the key factors for securing attractive deals when sellers aren't financially distressed but are instead motivated by lifestyle or retirement? 2) Market Dynamics: What are your current observations regarding supply and demand for these types of assets in high-barrier-to-entry drive-to leisure markets, particularly in the Northeast? Are you encountering significant competition, and how are you differentiating yourselves? 3) Growth Levers: Assuming a successful acquisition of a "stressed" (but not distressed) asset, what have been the most effective operational improvement strategies you've implemented to unlock significant earnings growth###-###-#### %+) in these smaller, independent boutique hotels? Are there specific areas (e.g., revenue management, F&B, marketing, ancillary services) that offer the most immediate upside? It is entirely understandable that there is no one-size-fits-all solution, but has anyone noticed something trending upward? We're excited to hear your experiences and insights on this segment of the hospitality market. Thanks in advance!