Business Overview

BEAUTIFULLY MAINTAINED HOTEL NEAR MAJOR ATTRACTION!

Interior Corridor
100 Rooms
4 Stories

2019 Revenue: $1.4 Million (Major renovation done to property)
2018 Revenue: $1.7 Million

Mostly Completed PIP!

Do not miss our on this opportunity to purchase this fantastic property!

Financial

  • Asking Price: $7,500,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell operating businesses. Nonetheless, the genuine factor vs the one they say to you might be 2 completely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competition, recent reduction in revenues, or a variety of other factors. This is why it is really vital that you not count totally on a vendor's word, however instead, use the vendor's solution along with your general due diligence. This will repaint a much more sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many companies finance loans so as to cover things such as stock, payroll, accounts payable, and so on. Remember that in some cases this can suggest that profit margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in new customers? Often times, companies have repeat consumers, which create the core of their everyday revenues. Certain elements such as brand-new competitors sprouting up around the location, road construction, as well as employee turnover can impact repeat clients and also negatively influence future earnings. One vital point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the higher the possibility to develop a returning client base. A last thought is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Exactly how might the regional average family income influence future revenue potential?