Listing ID: 69814
Recently-renovated and modernly furnished four-stories hotel!
Great 76 guest room hotel with a fitness center, business center, meeting room, indoor pool, and complimentary breakfast/Wi-Fi!
Strategically located off major highways offering great visibility and location appeal to potential guests!
Amazing investment opportunity!
Asking Price: $7.75 Million
- Asking Price: $7,750,000
- 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 people choose to sell companies. However, the real factor and the one they say to you may be 2 totally different things. For instance, they might state "I have way too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may just be reasons to attempt to hide the reality of altering demographics, increased competitors, current decrease in incomes, or a variety of other reasons. This is why it is extremely essential that you not count absolutely on a seller's word, yet rather, make use of the vendor's solution in conjunction with your general due diligence. This will repaint an extra sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering items such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can imply that revenue margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new consumers? Often times, companies have repeat clients, which create the core of their daily profits. Certain variables such as brand-new competitors growing up around the location, roadway building, and personnel turnover can influence repeat consumers and also adversely influence future incomes. One vital point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business regularly, the higher the opportunity to construct a returning customer base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood median home earnings impact future earnings potential?