Buying any type of commercial property and the business that comes with it, can be challenging. The hospitality industry though, is one of the most competitive and stressful industries to get into. However, it can be very rewarding when it is done properly. Both in terms of the potential earnings you can get and the satisfaction of running a hotel on a daily basis and seeing it thrive. With that in mind we’ve put together some top tips and things to consider when buying a hotel. These will help you be more prepared and make for a smoother purchasing process. Also, it ensures you have the best possible start to your journey as a hotel owner.
Do your research
Research is essential when you’re considering buying a hotel. It’s only by knowing all the important figures and putting together an effective business plan for this property type – can you seamlessly integrate yourself into the business. Taking care to hold onto your existing customer base as well as finding ways to grow it. If you do a deep enough dive, you might even be able to find new, untapped potential within the hotel. This could allow you to be even more successful than anticipated.
See who else is in the area
This will probably be part of your research, but it’s unlikely that the hotel you want to buy is the only one in the area. Therefore, you should look at what other businesses in the industry are doing and how they are being successful in your target market. Is there anything unique that your hotel has and there’s doesn’t which could set you apart from them? Make sure you go into detail and don’t leave any stone unturned. As it could make the difference between a guest choosing another hotel and yours for their stay.
Think about the location
Location is one of, if not, the most important factor you should consider when buying a hotel. Depending on where your hotel is and what surrounds it will influence a wide range of other factors. Mainly how you’re going to market the hotel for example or how you want to design it, and the key features you want to make the most of.
As you’ve probably noticed, hotels in big cities are vastly different to hotels in the countryside. Consider the location of the hotel you’re interested in carefully before making the commitment. You need to be sure it is the right location for you and the type of clientele you want the hotel to attract.
Understand your target market
The type of hotel that suits one person might be another’s idea of a nightmare. Hence why knowing who you should be targeting is so important. Will your clientele mostly be business people who just need somewhere to sleep? Families looking for mini break? Couples wanting a romantic getaway? Once you are sure on the location understanding your target market is the next step. Allowing you to set yourself up for success. Both when buying a hotel and for your long-term business strategy and goals.
Speak to the experts
Buying a hotel is a big purchase that inherently comes with a significant amount of risk. It’s not something that should be rushed into or taken lightly. Therefore, you should always consult experts who have the knowledge and experience to guide you through the process. They can make you aware of all the risks as well as the benefits to make an informed decision on whether buying a hotel is right for you.
As commercial property experts, our team at Toomey Legal can help you with all aspects of your hotel buying journey. This will ensure you’re fully prepared and your investment is protected. Giving you a clear direction and plan in place for your purchase and business to be successful.
It’s not just conveyancing and financial experts you should consult either. Building surveyors, construction workers, or anyone familiar with that trade can give you a better insight into the quality of the building itself. Ensuring that everything is as described without any problems. Don’t overlook this if the building is already operating as a hotel, there could still be serious issues that are well hidden that only industry professionals would be able to highlight.
Conclusion
Looking for reliable help and support to successfully buy a hotel? Our commercial conveyancing solicitors in Newcastle have the knowledge and expertise to make the process as quick and efficient as possible, avoiding any unnecessary delays and stress. Contact us today to discuss your needs and see how our experienced conveyancers can help you when buying and selling commercial property.