Buying your own hotel is a popular way to start a new business. Every year, thousands of people, from retired couples to industry professionals, purchase guesthouses, hotels and bed-and-breakfasts, creating a business as diverse as the buyers.
Steps
Step 1. Location Location Location
Choose a location that you yourself consider attractive. Decide how big you want your hotel to be, how many rooms you want it to have and the type of services you'd like to offer. You will also have to choose between a franchise, a turnkey or an independent facility.
Step 2. Evaluate if it's a good deal?
Determine the real reason the current owner decided to put the hotel up for sale. Ask numerous questions and demand verifiable and sensible answers.
Step 3. Do your research
Check the hotel's past financial data for the past 10 years. Also inquire about the country's development plans and find out if any repairs are needed that could temporarily disrupt the influx of customers.
Step 4. Ask around
Find out who the competitors in the area are and what kind of reputation the hotel has built. Make sure there is ample parking space.
Step 5. Examine it
Examine it completely from the inside out. Observe every single inch of the structure with the support of an expert building contractor. Get documentation and invoices for all repairs and renovations.
Step 6. Review every detail one last time and make sure you really understand what you are buying
Advice
- Don't spend every last of your savings on hotel purchases.
- The location is essential.
- When you want to attract customers it is important to evaluate the recognizability of the name.
- Choose a more than adequate insurance.
- Choose a place you love and want to spend a large part of your life in.
