The accommodation industry is very large and diverse, encompassing bed and breakfasts, budget hotels, hostels, luxury hotels and many other options. There are accommodations to suit all kinds of requirements in terms of price, facilities and location.
Our buyers would typically look at the following scenarios when buying a B&B or guest house: -
Location
Location has a strong bearing on your chances of success. When choosing it, they would look to see if your business is busy year-round or only in peak seasons and choose accordingly. For a greater chance of a sale, a location that’ll be popular come rain or shine; one that boasts sights and activities that could attract visitors in both heatwaves and snowstorms would be highly desirable.
Type of guests
Though this may not influence anything more than your décor or menu choices, it’s a good idea for the buyer to understand your target audience, as running a guest house for young families will be quite different to one which is patronised by retired couples.
Reason for Sale
There’ll be a reason why you as the current owners want to sell. It might be that you wish to retire or have a personal reason for moving on. Make sure you are clear as to why as this give buyers a clearer understanding of your objectives
Room Rates
What to charge can be a big dilemma, and it depends on several factors: the amenities on offer, location, competition. Establish how the current rates compare by drawing up a list of all the B&Bs, guest houses and hotels in the area. Where does your business realistically fit in the ‘hierarchy’ of accommodation? Would those rates be enough?
Size
Size is a big deal in the hospitality game and will often influence the valuation.
Reputation
You want your property to be well-regarded. Demonstrating customers feedback and experience will enhance the valuation and give buyers confidence they are purchasing a reputable business.
Growth Opportunities
Buyers are essentially buying into future profitability. It’s helpful to demonstrate whether there are opportunities to grow the business in the future. For instance, is there room and/or planning permission for an extension? Are there any restrictions placed on the property or area that might prevent expansion? Are there spaces that could be converted into a tea lounge or bar, to attract passing trade?
Your USP
Is your property in a popular area, you need to work out what makes your business stand out You need to define your unique selling point, so buyers understand what makes your business stand out from the competition?
Do you have a business in this sector and wish to explore its saleability?
Get in touch today!
CLICK HERE for information about how we can help you achieve a successful sale.