Updated over 11 years ago on . Most recent reply
comping a closed hotel
Hi, everyone,
I need some input. My broker sent me an opportunity to buy a 90 room, full service hotel in a rural area, and the price seems low- the owner wants $475K. The biggest problem for me is: how do you comp a closed hotel? If it was up and operating, I' m sure the purchase price would be much higher. I am fighting the urge to just go ahead and pull the trigger right away based on the price, and would sure appreciate any advice from you guys. Thanks.
Most Popular Reply
We need to find out if the hotel has extreme deferred maintenance? roofs? rooms need renovated? taxes? water damage?
Last time the hotel was in service?
Look up the hotel VIA Trip Advisor or google reviews to see what guests wrote about it. It can tell a lot about the place.
If the hotel had a "previous stigma" attached to it due to crime and/or bugs (variety of causes), then you will have to "re-brand" the hotel... Start fresh...