Listing ID: 70108
One of the crown jewels in the hotel business is now for sale. This listing is a family owned inn founded and built over 40 years ago. The motel is located at one of the gateways to the Smoky Mountains, a tourist haven that annually sees millions of people visiting every year. The real estate and buildings, FF&E, cash flow and goodwill are all included in the sales price. This well-established resort has plentiful rooms, an outdoor pool and a spacious conference center for meetings. The owners are ready to retire and will help transition to the right buyer. The seller is looking for a buyer who is family oriented and is not an “institutional” investor.
- Asking Price: $5,950,000
- Cash Flow: $722,619
- Gross Revenue: $1,305,839
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
Location, Location, Location: this hotel has scenic views into the Smoky Mountains and the real estate, furniture, equipment is all included in the asking price.
The firm is a 40 year-old established brand that has incredible reviews and repeat clientele along with new tourists coming every year. There is little to no competition like this hotel based on their longevity and customer service.
Growth strategies include a more aggressive and focused regional marketing campaign to add to the solid clientele base. Also adding additional levels/rooms on the existing buildings, which could be done in a very economical manner.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. However, the true reason and the one they tell you may be 2 entirely different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competition, recent decrease in incomes, or a variety of other reasons. This is why it is extremely crucial that you not depend completely on a vendor's word, however instead, make use of the vendor's response together with your general due diligence. This will repaint an extra sensible image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover things like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be fulfilled or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract new clients? Many times, companies have repeat consumers, which develop the core of their day-to-day profits. Specific elements such as new competitors sprouting up around the location, roadway building, and also staff turn over can affect repeat customers and also negatively affect future earnings. One vital point to take into consideration is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning consumer base. A last idea is the basic area demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Just how might the regional average household earnings impact future income prospects?