Buying a hotel could prove to be a very wise investment on your part, and a great way to support yourself in the mountains. The travel industry is one that seems to always be in demand and even when times get tough, people still travel and will therefore always have a need for hotels.
You may have your eye on a mountain hotel and you may be ready to get moving on pulling the buy trigger, but before you do, you should consider a few things first. Here are some considerations to make before you commit to buying a hotel in the mountains:
• Structure: Just as with any other type of real estate that you buy, when you buy a hotel, you need to make sure that the building itself is structurally sound. This is something that you may want to hire a pro for. You can have an inspection conducted and this will save you a lot of money and headaches should the inspection come up with anything major that needs to be addressed.
• Guest Treatment: The number one item on every hotel’s list should be guest satisfaction. You can get a good idea of how guests are treated by becoming one. Of course you should do this before any talks with the owner start and you should stay at the hotel you are interested in for at least a week. This will give you ample time to see how well the staff treats you and will let you know exactly what you are getting into.
• Is it Profitable: If you get to the point where you are talking with the current owner about selling the hotel to you, then you will want to be sure that you are buying an investment that is profitable. The only way to know this is by looking at the books for the past several years to determine just how much money the hotel can yield you.
• Compliance: You also need to be sure that the hotel you are looking at is in full compliance with all local, state, and Federal regulations. Ask to see proof of all licenses needed and find out the cost of staying in compliance ever year.
• Use a Broker: If this is your first hotel that you are investing in, then you should strongly consider using a business broker to help you get the deal done. You will need to know what your bottom line is, but only a broker will be able to get you the best price possible. While you may have to pay a broker fee, it will be money well spent if it means they are saving you even more on the purchase.
Buying a hotel can be a wise investment, but it can also be a disaster. The difference in the two is usually nothing more than thorough due diligence and careful planning. By taking your time and covering all your bases, you can be sure that the hotel you buy will be one that will pay off for you for many years to come.
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