Cant sell my hotel

Ricerocket0_1

GDB2222 wrote: »

It strikes me that the problem in Blackpool is too many hotels chasing too few clients, with the result that there's absolutely cut-throat competition on prices. That can only be resolved in a couple of ways:
1. Loads of hotels go bankrupt or simply close up.
2. The town ups its game and attracts more visitors.

Yes your are correct, every one trying to under cut one another. I've seen rates as low as £12 per person per night.
My neighbours are charging £9.95 per room on certain webs site's, a last resort thing?
This year I changed my rates to £20 per night with out breakfast or £27 with giving people the option, same tariff all year round.
No more discounts for staying several days etc, at £20 per night I couldn't afford to do it for less.
At the beginning of season the few enquiry's I got, told them my rates....very few wanted to book so my wife and I decided to hang our gloves up, enough is enough!
My Hotel is very close to Pleasure Beach & South Pier, prime position so I do hope Disney World take an interest in the area soon.
That would really up the game here in Blackpool, then maybe my place would sky rocket in value??? :j

GDB2222

Ricerocket0_1 wrote: »

My Hotel is very close to Pleasure Beach & South Pier, prime position so I do hope Disney World take an interest in the area soon.That would really up the game here in Blackpool, then maybe my place would sky rocket in value??? :j

Well, if you are selling up, there's no harm in starting the rumour.

moneysaver

Ricerocket0_1 wrote: »

My Hotel is very close to Pleasure Beach & South Pier, prime position so I do hope Disney World take an interest in the area soon.
That would really up the game here in Blackpool, then maybe my place would sky rocket in value??? :j

Don't hold your breath.

You must have a short memory, remember the rubbish about turning Blackpool into the Vegas of the north. The council was talking about Blackpool getting the super casino 10yrs ago.

Get out as soon as you can Blackpool is a sinking ship, your hotel will be worthless in 5yrs time when the pleasure beach goes bust.


Moneysaver

Ricerocket0_1

moneysaver wrote: »

Don't hold your breath.

You must have a short memory, remember the rubbish about turning Blackpool into the Vegas of the north. The council was talking about Blackpool getting the super casino 10yrs ago.

Get out as soon as you can Blackpool is a sinking ship, your hotel will be worthless in 5yrs time when the pleasure beach goes bust.


Moneysaver

The children section of Pleasure Beach is already owned by a subsidiary company of 'Disney World'.... so one of the employee's inform me.
I have also been made to believe the 'Thompson family will' has tied the sale of the park up until contracts permit, of which is possibly up in the next 12-18 months or so??
If I'm talking crap I'll eat my hat, however does come from a Fairley reliable source. The Pleasure Beach is not in any money troubles what so ever, this has come from other sources again. Who knows...........

As for your comment about getting out, I'v been trying for 4 years!
I'll have to put up with living in a huge house just off the sea front, all paid for
If any developers want it in years to come, it will cost them! :cool:

chickmug

It is not uncommon for businesses to be on sale for prolonged periods and four years is nothing. Business owners tend to be even more deluded than private house sellers.

During the past year or so, of a c-rap housing market, the business sales market, on freeholds especially, has been a lot worse and some agents are totally reliant on leasehold sales to keep them afloat. But those who take 'up front' fees are still living off the misery of those silly enough to pay.

So trying to sell a hotel in a really c-rap market may be impossible no matter what promotion is carried out. For those that say 'too dear' I agree but only to a point as to really force a sale, as would a bank, it would be peanuts.

So for those who have to sell a 'peanuts' price is the only way because if the business fails that is what the bank will do. But for those who can 'tick along' it is fingers crossed and the position may improve but........... will it and when will it.

I have dealt with many failed businesses and seen those who have lost everything which I guess is the down side of self employment.

BUT most did not do their homework when they bought BUT it was a case of loving the resort as they always go there on holiday, losing their job, looking for a hotel/B&B, not checking the cash flow forecasts, not checking the accounts, having NO business experience (working in a factory does not give this), borrowing 10 x the Net Profit because lenders were silly enough to give this and a recipe for disaster BANG it all explodes in their faces.

I am NOT saying anyone deserves this but there are more than enough of those who have experienced what I say in the above paragraph.

lincroft1710

chickmug - I often used to come across a variation on that theme. Someone who has a skill and is paid for that skill by an employer, decides they could make more money as self employed. Big mistake! They take on premises as rent seems OK, but forget that business rates, water, heating and lighting also need to be paid for. They resent paying accountant to sort out tax and VAT and don't realise if they want a holiday or have to have time off sick, there's no money coming in.

Although many years ago a prime example was a guy in late middle age who took over a barber's shop at a time when men were growing their hair long. Used to see him most days standing in the shop doorway just waiting for customers. I think he lasted about 2 yrs.

Ian_W

Ricerocket0_1 wrote: »

As for your comment about getting out, I'v been trying for 4 years!
I'll have to put up with living in a huge house just off the sea front, all paid for
If any developers want it in years to come, it will cost them! :cool:

You and hundreds of others by the look of it, so I wouldn't hold your breath waiting for those developers "big bucks"!

There is a massive over-supply of hoteliers wanting to sell up in Blackpool, so even the Bricks & Mortar value of a large house near the prom seems hugely devalued. I made the point about Right Move a few pages back, between £190-200K there are over 100 properties for sale and about half are 10-20 bed hotels, seeking the same price as 2-4 bed semis and detached. Do the same search for Scarboro' (much smaller place but same type of attractions and clientèle I would have thought) and it's 1 out of 36 properties!

I hope you do get "Disneyworld UK" but don't forget they usually come with their own hotels and a lot of visitors will be day trippers though I'm sure there will be a knock on affect.

Unless or until that happens it's the peanuts option or sit tight as far as I can see.

Ricerocket0_1

Ian_W wrote: »

You and hundreds of others by the look of it, so I wouldn't hold your breath waiting for those developers "big bucks"!

There is a massive over-supply of hoteliers wanting to sell up in Blackpool, so even the Bricks & Mortar value of a large house near the prom seems hugely devalued. I made the point about Right Move a few pages back, between £190-200K there are over 100 properties for sale and about half are 10-20 bed hotels, seeking the same price as 2-4 bed semis and detached. Do the same search for Scarboro' (much smaller place but same type of attractions and clientèle I would have thought) and it's 1 out of 36 properties!

I hope you do get "Disneyworld UK" but don't forget they usually come with their own hotels and a lot of visitors will be day trippers though I'm sure there will be a knock on affect.

Unless or until that happens it's the peanuts option or sit tight as far as I can see.

First of all the Council have made it very clear they want us all gone and rightly so, I'll be the first to agree with that.
Many old Guest Houses will be converted back to houses, many will eventually be demolished and then there are a few of us in prime positions close to all major attractions.
Sooner or later developers, Disney World or who ever will want the land I'm positioned on. If I'm an old man by then, then so be it because I am not dropping below my £270k asking price......well not much any way. There comes a limit and I'm there now!
Blackpool is the biggest sea side resort in England by a very large margin, things have got to improve sooner then later. :eek:

Running_Horse

Has the current recession helped, with more holidaying at home?

hotelstobuy

I run the largest online directory of hotels for sale in the UK.

I wanted to point out that hoteliers need to put much more effort into the sale of their business than in the past. This isn't just due to the recession but because there are lots of new ways in which to sell a business these days. Word can spread in so many different ways via the internet and you have to ensure that you get an agent who uses the internet to it's full in their marketing.

Interestingly, we have seen a big increase in hoteliers marketing the sale of their own businesses privately over the last couple of years. I think this is because some vendors feel they are personally in the best position to market their business most effectively. With an agent you often end up showing a buyer around your property anyway and you can decide where and when to advertise your business for sale, including having your own stand alone website dedicated to the sale (something which we can set up for you BTW). You still hand over all the legal side of negotiations and the sale to a solicitor, but you can cut out the commission you would have to pass on to an agent in the event of a sale. Sometimes this can amount to many 1000's of pounds.

Having said all this, some agents do a fantastic job and are worth their money. Unfortunately others do not and, I'm afraid, your business ends up being just one of many on their books.

I would endorse other people's comments about the importance of having great photos. They make a HUGE difference to the number of enquiries you can get. Also, continue to run your business in a professional and profitable manner. You have got to show that it is a viable going concern and, even when your heart may not necessarily be in it, you do have to keep it running at it's best.

I hope you manage to find a buyer and are able to move on soon. We have found that enquiries are picking up at the moment and we are confident that 2010 will a lot better than this year.

Celia Carruthers
p.s. I can't post a link to our site as I'm a new user. Fair enough, but if someone else could do it for me and for the benefit of others I'd be grateful. It's www. hotelstobuy . co . uk