The hotel industry is becoming more and more profitable and considering that the economic crisis is almost over, a lot of people choose to stay at a hotel when they are away from home. Still, building a hotel can be pretty hard this days. Considering the amount of authorizations needed, the price of the construction materials and the difficulty of finding a proper land, it can take dozens of years before you will actually make some profit. However, if you want to start a business in the hotelier industry, you should know that there are many hotels for sale all around the world.
The hotel sales can happen for various reasons. For example, the previous owner had a perfectly functional hotel but because he needs money quick for another business, he is willing to sell his hotel at a fair price. Also, there are many hotels for sale, in which the owners cannot afford to renovate them and they decide to sell them at a cheaper price. Still, an old hotel implies some additional charges, so you have to take that into consideration when buying one.
An important thing to do, before checking any hotels for sale is to make sure that the location is tourist friendly and has a constant commercial venue. Many new realtors are getting fooled, and when they see a nice renovated hotel at a cheap price, they buy it instantly. This is a wrong approach and whenever you participate at hotel sales you have to make sure that the surrounding area has many visitors and it’s profitable. And you might think, why would someone build a hotel there, if the area is unprofitable? Well, the answer is simple. There are a lot of ex-touristic places which, for different reasons are no longer an attraction and they are not visited anymore. There are a lot of nice hotels for sale located in a place like that, so you need to be careful, because with one of those, instead of profit you will damage your budget even more.
Another important aspect in the hotel sales branch is to always evaluate the hotel as any other real estate, following hotel news. There are a lot of owners that styled their properties, to make them look new and renovated, but everything is facade. From what you know, the hotel might have serious problems at the pipes, sanitary installations or even at the structural frame. Before making any deal, you have to be prepared and to ask for a specialized review of the whole building. If the owner refuses to give you access, citing any reason, then you should know that something’s not right and you should avoid buying that estate.
As you can see, buying a hotel is not a simple task. So, if you are a new realtor or a person that wants to start a business in the hotelier industry, you should take into account our tips and to act accordingly. Still, even if everything looks fine but you just feel that something is not how it supposed to be, then you should consider calling a consultant. There are a lot of specialists which are more then happy to offer you a full evaluation and to advice you if it’s wise or not to buy that hotel.