A great way to get into the hospitality industry is to buy a hotel, be it a guesthouse, a bed and breakfast, a lodge or a full on hotel with accommodation, restaurant and bars.
There is a huge range of motel and hotel businesses for sale in New Zealand, so it pays to do your homework well. One of the easiest ways is to check out the hotel for sale listings on popular websites like hotelsmotelsforsale.co.nz
Buyers drawn to the accommodation industry come from all walks of life. Some are looking for a complete change of lifestyle, others to improve their income, and some just wanting a new challenge. Most however will be wanting to deal with people, provide them with a great hospitality experience.
Key questions to ask are; how many rooms, and what’s the average occupancy rate? What’s the food service element of the turnover? What might improve this hotel? What are the demographics of its customers and how long do they stay? What Unique Selling Propositions does this hotel have?
When buying a hotel consider;
The Location. Consider the location carefully; is it attractive to you and patrons? Decide what type of Hotel for Sale NZ opportunity will best suit your needs. Whether you are looking for hotels, motels for sale Christchurch or motels for sale Wellington, investigate the market, the demand, surrounding area, attractions, competition and if it's a good investment.
Accounts and profitability. Work out what the hotel's likely returns will be for the next three to five years. Watch for expenses that are missing, or are unusually low or high. Ask questions and get answers that can be verified. Will this business give you a suitable return on your investment? Make sure the numbers work for you.
The Property. Inspect the hotel from the inside out paying close attention to repairs and maintenance. Identify and factor in any future expenses. Check with town planning for future development and any work that may interrupt business. How's the access and parking? How close is the competition and what advantage will you have if any?
If purchasing the building, seek professional advice on what the market value of the property is. Find out exactly what comes with the business. Check all licenses and compliance requirements are in-place. Review any contracts that the owner has with suppliers and customer groups.
When buying a Hotel make sure the numbers work for you and the business meets your criteria. Working in the hospitality industry can mean some long hours, so expect a very busy first year as you learn and fine-tune your business.