What would be the impact on an owner's ability to sell a hotel if the management contract currently in place on the property included a very high cost buyout clause?

Question

Quizplus · Accepted Answer

A high cost buyout clause would make it more difficult for an owner to sell the hotel because it would increase the cost of transferring ownership. Prospective buyers may be deterred by this added expense, which could result in a smaller pool of buyers and a longer time on the market. As a result, the hotel would be harder to sell.

What Would Be the Impact on an Owner's Ability to Sell