Business Overview

Established motel including real estate for less than $17k / door. Interstate front between 2 large metro markets. 23 rooms with single, double and triple bed occupancy. Currently it houses a live onsite Manager who handles housekeeping.

There is approximately 3 acres behind the motel which could be put to use for RV parking, storage, additional rooms, etc. Total property included in sale is 3.75 acres and large storage barn. Caters to interstate travelers and current experience is ~50% pay with credit card, ~50% pay in cash. Rooms rent for $45 – 70 per night.

Financial

  • Asking Price: $399,000
  • Cash Flow: $44,438
  • Gross Revenue: $82,235
  • EBITDA: $44,438
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1957

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Interstate Front between 2 major metro markets

Is Support & Training Included:

Owner will provide 30 days on-the-job training included in the sale price. Training to include order process, store process & procedures.

Purpose For Selling:

Owner pursuing other interests

Additional Info

The business was started in 1957, making the business 65 years old.

The company has 2 employees and is situated in a building with disclosed square footage of N/A sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals resolve to sell companies. However, the genuine reason vs the one they say to you may be 2 totally different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these may simply be justifications to try to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or an array of various other factors. This is why it is really crucial that you not depend absolutely on a vendor's word, but instead, use the seller's solution combined with your overall due diligence. This will paint a more reasonable image of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses take out loans in order to cover points such as supplies, payroll, accounts payable, etc. Remember that occasionally 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 likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be met or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new customers? Most times, operating businesses have repeat customers, which form the core of their day-to-day profits. Certain aspects such as new competitors sprouting up around the location, road construction, and personnel turn over can impact repeat consumers and also negatively impact future profits. One essential thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the higher the possibility to develop a returning customer base. A last idea is the basic location demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Just how might the neighborhood typical family income effect future income potential?