Changing lifestyles have ushered in a perceptible paradigm shift with more of mankind – than ever before – demonstrating an increasing trend towards traveling and vacationing.- which evidently makes Hotel property for sale the new age buzzword!
The industry could well be amongst the most lucrative of all investments but all hotels are not a sound and viable business options.
Those aspiring to procure hotel property would well need to control some or more of these:
► Professional Evaluation
To assess and evaluate the market value of the hotel property using professional expertise – which could well include:
– The cost of renovation
– The inventory holding cost
– Updating of equipment and fixtures
The buy would scarcely be considered as being complete and exhaustive without a separate deed for the property and a separate one for the inventory, fixtures and the likes
► State Plans
State plans and economic projections would well be critical to the perceived and real value of the hotel property – to illustrate the case in point – should the state plan a highway diversion – the hotel property on the highway could well become close to worthless and the price being paid for the same may well be an overpriced bid
The more discerning of potential hotel property buyers would well ensure that the hotel property is visualized from within which is best achieved by lodging as a guest for an extended period of time!
The more enlightened of potential hotel buyers would invariably ensure that the dollar talk is done by the broker and not the self – the final price could well be intimated to the broker but never broached with the hotel owner direct
The more enlightened of potentials would invariably closely scrutinize the agreement of Franchising which the present owner has with the company – it could be detrimental to the transaction considering that it could be possible that the existing franchising agreement may not be transferable and the new owner would have to pay the fees for signing a fresh agreement – making the deal more expensive than is apparent!
► Market Positioning
The market reputation is the most important of all – considering that hotels which have a poor local reputation should necessarily be purchased at a price which is much lower than the market price!
This could scarcely be considered amazing – a reputation that is once tarnished can seldom be regained and this would be detrimental to the business equation!
The hotel would need to meet all compliance specifications as dictated by the state government and hotel properties which are non compliant or open to litigation should seldom be purchased!
The decision to seek and procure hotel property is then a well researched and closely evaluated decision and needs to be taken within a scientific temper!