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Cant sell my hotel
Comments
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correct. @ hamish, i understand what you are saying, but actually the overheads are very low. surprisingly so. not brilliant, but better than you would believe. rightly or wrongly, we have spent a lot on improving the business over the years, and are about to get a star rating from the AA, which wouldnt have been possible even 5 years ago.
yes we have put a lot of time and effort into this, and yes a minimum wage job would be better. another reason we've had enough. however, it would be fair to say we have kind of hit a brick wall. once you know you want to leave, its hard to generate the ideas and the enthusiasm to drive a business forward0 -
oh, and i meant that the level of our trade is nothing to do with why we are leaving, not with why we are not selling0
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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.
With a property that size, the running costs, maintenance and upkeep would be horrendous, to be supported by that low a level of turnover. And as you point out, the returns are less than minumum wage.
I could see a small lifestyle, hobby, B&B working on the numbers you describe, but not a 37 bed hotel!!!!!!
The B&M is the key value here, the F&F will be minimal (and fully depreciated) having looked at the pics, and as I said, I can't see how it's netting anything for the GW to be worth much at all.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
correct. @ hamish, i understand what you are saying, but actually the overheads are very low. surprisingly so. not brilliant, but better than you would believe. rightly or wrongly, we have spent a lot on improving the business over the years, and are about to get a star rating from the AA, which wouldnt have been possible even 5 years ago.
yes we have put a lot of time and effort into this, and yes a minimum wage job would be better. another reason we've had enough. however, it would be fair to say we have kind of hit a brick wall. once you know you want to leave, its hard to generate the ideas and the enthusiasm to drive a business forward
Fair enough.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
oh, and i meant that the level of our trade is nothing to do with why we are leaving, not with why we are not selling
Fair enough again“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I have just done some sums ( I think ) and the turn over is equivalent to each bedroom is pulling in £6 a day. But obviously they are pulling in even less because the bar and food figures are included in the £80k turnover.
Is this normal?S!!!!horpe0 -
I see it is not featured on Rightmove. Would it not help if it was?S!!!!horpe0
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I have just done some sums ( I think ) and the turn over is equivalent to each bedroom is pulling in £6 a day. But obviously they are pulling in even less because the bar and food figures are included in the £80k turnover.
Is this normal?
to be honest, i have never really looked at it that way. sounds daft, but true. in truth, most people dont look at bums in beds as where the money is made (in a hotel of this type). the money is made on food and drink sales. obviously there is a profit to be gained from that; the busier you are the better.0 -
slowdog
I will dip out of this thread as you don't seem to helping me help you. If you want me you will need to PM me.A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0
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