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Travel and Leisure > Vacation Rentals > How to Buy Hotels and Motels ?
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Article rating : 0.00, 0 votes. Author : motelsale
Step 1. Locations and Tourism is rapidly becoming the world’s biggest industry, and the UK – whatever you personally might think of the weather – remains the fifth most popular destination in the world, after France, Spain, the US and Italy. In 2007, 24.7 million foreign visitors came to the UK, making the industry worth £74.2m to the British economy. For hotel motel for sale owners, native business remains the primary source of income. British residents spent more than 43 million nights in hotels, motels and guest houses in 2007, with a further 11 million stays in B&Bs and Farmhouse B&Bs. Pick a location that is attractive to you. Decide how large you want your hotel to be, how many rooms and what the amenities will be. You will need to decide if you want to pursue a franchise, turn-key or independent hotel or motel.Step 2. Two Determine the real reason the current hotels or motel owners want to sell. Ask a lot of questions and get answers that can be verified and that make sense. And Check the financials for the hotels or motel dating back at least ten years. Also find out about the town's plans for development and any repairs that may need to be made that will interrupt business.Step 3."It is a very good lifestyle," he adds. "With a seven to eight bedroom guest house you could turn over about £45k a year, based on an average of £5k to £6.5k per bedroom." This sort of scale will suit a semi-retired couple, he says, who can expect to convert about 50% of the turnover into profit. Step 4. Above the VAT registration limit of £61k, however, the nature of the business changes profoundly. There is a 'gap' in which the business is unviable, as the extra proceeds end up in the taxman's pockets due to the
17.5% which has to be added to all bills. Hotels only become sensible propositions again once you pass the £100k turnover mark, which roughly corresponds to 16 bedrooms. Once you reach that size, you can choose to employ additional staff, such as chefs and receptionists. Step 5. With the exception of year-round hotspots such as London or Edinburgh, seasonality remains one of the biggest issues for a hotelier. In Devon, for example, trade is brisk in July and August while November and February are much quieter. Buyers should be aware of how tourism as an industry has changed since the halcyon days of the British seaside resort. Step 6 .No prospective hotel owner can ignore the power of the ‘grey pound’. Britain’s over 60s are richer, healthier and more populous than ever – and they are determined to enjoy their retirement. Activity-based breaks, such as golf, cycling and walking long-distance paths such as the South West coast or the Pennine Way, are increasingly popular among those in this age group. The latter offers great opportunities for the potential entrepreneur. Of course, the key to running a successful hotel is to understand your potential clientele. Step 7 .Some even target a particular section of society – there are thriving hotel motel for sale owners in Manchester and Brighton devoted entirely to the gay community, and very different establishments in the Lake District catering entirely to the needs of walkers (by, for example, offering packed lunches). Step 8 . Discuss your desire to buy a hotel with your family and friends. Put together a financial advisory board to help you attract investors. Communicate all your thoughts about the purchase before you sign on the dotted line. Once you sign the hotel becomes your property and responsibility.
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