Listing ID: 69953

Business Overview

We are offering new to the market a 45 room flagged hotel in a large Central Illinois town. Interior corridor. 26,500 sq ft building on 1 acre of ground. 22 years old. All PIP requirements have been satisfied so this is turn key. Located directly off the interstate and the only hotel at the exit. The property ha an indoor pool, fitness center, guest laundry and breakfast area. 2019 room revenues of approximately $800,000 with an EBITDA of over $225,000. Great property will not last long.

Financial

  • Asking Price: $2,975,000
  • Cash Flow: N/A
  • Gross Revenue: $797,715
  • EBITDA: $228,453
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:26,430
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell operating businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 entirely different things. For instance, they may state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might simply be excuses to attempt to hide the reality of transforming demographics, increased competition, current reduction in earnings, or a range of other reasons. This is why it is extremely important that you not count absolutely on a vendor's word, however rather, make use of the vendor's solution along with your general due diligence. This will paint an extra reasonable picture of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that revenue margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that should be satisfied or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in new clients? Most times, companies have repeat consumers, which create the core of their day-to-day earnings. Certain factors such as new competitors sprouting up around the location, roadway building and construction, and also personnel turnover can impact repeat customers as well as adversely impact future revenues. One important point to consider is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the chance to build a returning consumer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Just how might the neighborhood typical house income influence future income potential?