Consequently, the term hotel “broker” had mostly a negative perception.
Over the course of the past 35 years, for many professionals, “broker” has moved to a role as a trusted advisor for those who passionately make paramount their fiduciary responsibilities.
In this article, I would like to distinguish the difference between the negative connotation of “broker” from the role of a trusted advisor.
1. First and foremost, trusted advisors represent the owner’s interests completely, not their own. They play the long-game and will tell you the truth even when it conflicts with their own short-term self-interest. If you have worked with a broker for years and they have never told you to hold rather than sell, you should consider the implications.
2. Trusted advisors tell you what they really think rather than what you want to hear. While it is important that the broker be able to make the value proposition to investors with conviction, selecting a broker based predominantly on their opinion of value may not result in the best or most honest outcome.
3. Trusted advisors don’t use carrots and sticks. If you are selecting a broker because you are worried they will not show you deals in the future or because they are showing you deals they are not showing to other people, thereby giving you an advantage on the buy side, they are almost certainly doing the same thing on the sell side. Trusted advisors only look out for their client’s best interest and that means finding the best possible buyer from the best possible audience regardless of implications for themselves.