Many people rush through the process of buying a motel, looking to cash in on the brisk business only to make costly mistakes. The article highlights some of the crucial factors to consider when purchasing a resort.
Resorts make a great investment for anyone seeking to venture into the hospitality industry. Travellers often look for affordable accommodation to rest for the night or when attending a weeklong conference or a trade fair. Hence, by coupling exceptional service and pocket-friendly rates, motels report brisk business. However, before heading out to snag a motel for sale in Victoria, resortbrokers.com.au suggests you consider a few crucial factors.
Have the money ready
You are likely to get a better deal when having all the money at the ready at the time of approaching a buyer. To this end, arrange the financing well in advance of making an offer. Such an approach helps you to avoid taxing your finances more than necessary. Taking on too much debt — more than you can handle comfortably — could spell doom for your enterprise.
Ask to see the books
Other than buying the infrastructure, you are also buying the motel’s business and clientele. As such, you have a right to know its performance before you can make any commitment. Be sure to ask for the bank statement and books of accounts dating back three years. A quick study of the document would tell you of its financial strength and stability. It also helps you to understand the valuation of the business.
Check with the local city planner
The location of your motel determines the profitability of your operation. Quiet and secluded areas attract more visitors seeking a restful night of sleep. Hence, checking with city planner’s office alerts you to the future development project in the region. Massive construction projects near your establishment in the future could spell doom for a motel. Vital information keeps you from making crucial investment mistakes when purchasing one.
While motels make an excellent choice of investment, you need to take extra precautions when making an investing decision. Informed and well thought out decisions underlie your ability to make a successful purchase.