Hey guys, over the past month or so me and a partner have been going back and forth whether this hotel is a good business to invest in. It is posted up for sale in an area, not to far from some local ski resorts. There is some real upside to this property.
The owner of the property had a 500k note on this property, and he is willing to carry 200k of his own money as well meaning that the previous guy will carry 500 and this guy 200 totaling 700k total carried note. The asking price is 1.19mil for the entire property, 27 unit motel. The prices change from winter months to the summer months due to the demand of places to stay during the snowy months.
The way that I Calculate the potential monthly income for the property is somewhat complicated. There is no set way to know how many rooms will be rented out for the night on any given day, but I take 2 days from the week, friday and saturday, and base the caluclations on those numbers. This property will need a new business on top of us purchasing the property. So all new branding and all new marketing. That being said at the price its listed at it is no where near the price it belongs at. somewher near 815k-900k the price the previous owner purchased at.
The utilities are hard to calculate likewise due to the fact that it is on a larger scale and harder to know how much of what utility will be used each month. I figure it will vary, and with no previous books it will be hard to tell.
This is a vague side post, but I'm curious if ther are other Motel/hotel/Resort investors out there willing to give some insight on their experiences.
