Of course it requires significant investment, but it seems like an interesting business, owning one or several boutique type hotels and inns. I know little about it, what do you know about it?
Any one here ever bought a hotel?
byu/_thinkaboutit inEntrepreneur
Posted by _thinkaboutit
5 Comments
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I’m a hotel broker : it’s a fascinating industry: but not without its challenges at the moment: if you are U.K. based Boutique Hotelier does a great daily email if you want to get up to speed with the market. There is value out there .. but you need to be very clear about depreciation, costs, tax, staffing issues..
Depends on occupancy rates for the area.
Also you need to understand that you’re selling a perishable good.
If a room goes goes unbooked; you could never get the revenue back.
Hotels are all about location, also cost of running a hotel is super expensive . It’s not for everyone , if you are super rich, it’s like a prestige to have your own hotel, otherwise not so great
Tough business honestly. Probably better to be a developer and have the operations be handled by a larger hotel chain. It can be both a high opex business and low overhead business but it depends on a myriad of factors. Maintenance, revenue can be all over the place, any disruption in the economy can be killer and the capital expenditures can be high over time. If you have to do a remodel you have to multiply that times the number of rooms. You’d really want to work with a hotel operations consultant to work through all the intricacies. How many rooms can be turned per hour? What’s your revPAR? How much attic stock do you need? Is there room service? Are you outsourcing laundry? Is there any food and beverage component? Valet? What is your check in and registration system? How are you handling things like television and streaming (ensuring that people are signed out of their accounts when they check out)? There’s a lot to know.