A hotel is an important piece of real estate. It can be put up for sale at repurchase provided it is well evaluated and well marketed. The owner of the hotel will be able to continue his hotel activities after the repurchase sale has been made, but he must repay his installments little by little. He must also pay rent to the buyer until the end of the repurchase sale contract period.
Techniques for selling a hotel in repurchase
The repurchase sale of a hotel requires a certain amount of preparation. It is not possible to improvise, whether for the seller or the buyer. Indeed, the value is determined by the value of the real estate and the value of the business. Before putting the hotel up for sale, it is necessary to make an evaluation of the establishment which is done by multiple of the turnover, the RBE or gross operating result and the EBITDA or Earning before Interest , Tax, Depreciation and Amortization. In addition to these, location and location parameters help to modulate the price downwards or upwards. The state of the infrastructure, particularly in relation to standards, can also impact the valuation of the product, especially if major compliance work is to be considered.
Furthermore, one of the techniques for selling a hotel is also to choose the best form between the sale under sale in the form of assets or the sale of company securities. The first form consists of selling the real estate and the business through a notary at the real value of the real estate, consistent with a market value. On the other hand, the second form must be done in the presence of a lawyer or an accountant. It is especially suitable for a hotel whose walls are part of a real estate company and the operation of an operating company.
Selling a hotel to repurchase: how to evaluate it?
When selling a hotel through repurchase, it is essential to make an estimate to know the value of the business and the value of the real estate. Several factors are taken into account in this estimate such as location, staff, customers, condition of premises and standards. For location, if the hotel is located in the city center or near a tourist spot, this forms added value during the evaluation. Then, for the staff, it is an advantage for the buyer to have a team of professionals who know the general operation and the customers. Regarding the latter, a regular clientele ensures a certain recurrence of turnover and gives value to the hotel. And finally, the standards concern the security and accessibility of the establishment. We must also determine the installments to be paid during the repayment periods.
Tips to take into account when selling a hotel for repurchase
If you own a hotel, to be able to sell it successfully, you need to take into account a few notes. First of all, you must avoid making an active decision. A deed of sale to repurchase of a business is considered. It is therefore essential to prepare well psychologically and administratively. Then, it is recommended to adopt the right reflexes, that is to say highlight the property, issue an advertisement with lots of information and respect the contractual rules. Subsequently, one of the recommendations to take into consideration is to sell the hotel when it works and is profitable. You should therefore not wait until you are tired, demotivated or even bankrupt to sell it for repurchase. We can raise monetary funds to be able to carry out other projects.
In addition, when you sell a hotel in Réméré, you must also prepare a complete presentation file for the year of purchase, renovations undertaken during the years of operation, inventory of furniture and equipment, average occupancy rate, evolution of the turnover and simplified brochures from the last two balance sheets. Finally, it is recommended to contact experts when deciding to sell your hotel in Réméré. These professionals will be able to evaluate the business in a neutral manner.