Cant sell my hotel

slowdog

first of all, apologies if this is the wrong forum. i couldnt see where else to post it

im hoping someone out there can help. we have a hotel and are desperate to sell. it is nothing to do with how busy (or not) we are. we are actually doing quite well, considering the current climate. it is more to do with personal reasons. both me and my wife have, seperately, been in this kind of business for a long long time and we need a change. on top of this, its making my wife ill due to stress.

we have, however, been on the market for over four years. at first we advertised with local agencies, then went national, advertising (not all at the same time) with 3 different companies. we have also just taken on a small local company that advertise our property on the internet, but are not an estate agency.

in all that time we have had 2 people look at the property. one of them have come from the local firms internet advert. the other was over 2 years ago.

i understand that the economy is making something like this a pain, but we werent in recession when we first went on the market. we have done everything we can think of, even slashing a third off the asking price

if anyone out there has any ideas, i'll be glad to hear them. we are rapidly reaching the point where we just cant go on. its affecting our health and our marriage, and nothing is worth that. needless to say though, walking away is financially not an option

thanks

dazco

Have you got a link to it?

princessamy86

Yes, link please! Have you though about putting it in an auction?

slowdog

it wont let me put a proper link as i have only just joined. however, look at blackpool hotels for sale dot co dot uk no spaces obviously. we are the highest priced one

and yes, we have thought about an auction. however, im guessing that chances are, we wouldnt get anywhere near what we are asking for

chickmug

The last 15 years of my working life was a mix of property but specialising in many hotel sales. Give a link, or PM me, and feed as much information as possible and I will take a look.

Is it on web sites like Daltons, Businessfor sale, etc.

Also which agenst have you been involved with as Estate Agents may get bad publicity but they are Angels compared with Business Selling Agents!

princessamy86

You could get it valued though and see if it would be worth it for you? There's not usually a cost for that.

princessamy86

http://www.blackpoolhotelsforsale.co.uk/

slowdog

the estate agents have all been local, and sell commercial and residential

the larger ones have been commercial agents. rta, knightsbridge, and one that has changed hands so many times that i have no idea what they are called now. needless to say, they have advertised in places like daltons and so on

chickmug

slowdog wrote: »

the estate agents have all been local, and sell commercial and residential

the larger ones have been commercial agents. rta, knightsbridge, and one that has changed hands so many times that i have no idea what they are called now. needless to say, they have advertised in places like daltons and so on

RTA, Knightsbridge & several more have a 'business model' that sees salesmen persaudes owners the property is worth a heck of a lot more than it is and take 'up front' fees off people. They are happy to live off these up front fees and commission is a bonus but at the prices they ask!!!!!

Once you are snared it you never get away from them as they will chase for money, for mamy years after, even if you deinstruct them. they will probably be keeing an eye of your place to see if they can get you one day under their sleezey term.

Take a look at this link about this thing:

http://blogs.mirror.co.uk/investigations/2009/01/grief-from-commercial-sales-ag.html

You need to get valued by a sensible company and it needs to go on Daltons and Businessesforsale web sites - absolutely 100% essential. In this sort of sale much more is done by Internet than in private market.

HAMISH_MCTAVISH

slowdog wrote: »

we have a hotel and are desperate to sell. it is nothing to do with how busy (or not) we are. we are actually doing quite well, considering the current climate.

Actually, I am sure it is everything to do with how busy, or not, you are.

You are asking 400K for a business that's only turning over 80K a year. By the time you remove taxes, maintenance, labour costs, fixed overheads, variable expenses, I can't see how you pay yourselves anything at all. And theres no way at all that turnover could support a leveraged buyer entering the business.

You need to to get the property valued on a stand-alone basis, because the turnover is so low I can't see how the goodwill is worth anything at all.....

chickmug

HAMISH_MCTAVISH wrote: »

Actually, I am sure it is everything to do with how busy, or not, you are.

You are asking 400K for a business that's only turning over 80K a year. By the time you remove taxes, maintenance, labour costs, fixed overheads, variable expenses, I can't see how you pay yourselves anything at all. And theres no way at all that turnover could support a leveraged buyer entering the business.

You need to to get the property valued on a stand-alone basis, because the turnover is so low I can't see how the goodwill is worth anything at all.....

I have sold may hotels £500,000 + turning over sub Vat with 8/10 bedrooms B&B only but £35-£40k NP.

The type of folks buying this sort of business do not look at the sort of things that those in bigger business look at - surprising but true. The value is made of of B&M, F&F and Goodwill. The latter will (or should) show a Net Profit but with this number of bedrooms working your wotsits off 24/7 you are better off getting a minimum wage job.