Skip to main content

When buying a hotel business, avoid these mistakes

The hotel business is thriving worldwide with an impressive 550 billion U.S. dollars revenue expected to come in this year as reported by Statista. No wonder investors are so eager to devote their money to international hotel franchises. Dimitrios Kosvogiannis's world-touring has taken him all over the globe, allowing him to experience the cuisines first-hand. Dimitris Kosvogiannis has served in hospitality for 15 years. Much of his initial industry practice – and victory – came as Resident and Operations Manager at Couples Resorts.

An increasing number of entrepreneurs are turning towards the hotel industry when they think of buying a business.


It can be difficult to land a profitable deal if you are unsure of how to proceed. Here are some common errors to avoid when purchasing an existing hotel business.



1. Ignoring full disclosure


When you meet the seller, they will present a well-rehearsed pitch to entice you into purchasing their hotel. That's understandable but you should not allow future potential to cloud your judgment of the present. What matters, in the end, is the actual business you receive not what it could be in a couple of years. Make a point to focus on the liabilities that come with that purchase. Having facts and figures about essentials like rents, wages, employees, contracts, taxes, etc. will paint a realistic picture in your mind.


2. Neglecting due diligence


Never take the seller's word for it. It's not personal just business. Always ask for numbers outright but double-check them. It is your right to ask for proper documents and reports that depict the investments and cash flow of the establishment. Hire professional brokers, accountants, and lawyers who are experienced in handling hotel purchases.




3. Unprepared for a lifestyle change


It's always unwise to buy a business before understanding how it functions on a daily basis and your involvement in it. Hotels operate 24/7 so do not expect to be free on nights and weekends all the time. An excellent way to get accustomed to it is to come to an agreement with the seller about offering a free crash course in running a hotel.


4. Overlooking contracts


A hotel needs plenty of supplies so there are fixed contracts with vendors you must look into before closing the deal. Check the quality of the supplies and the reliability of the vendor. It is very important to ensure there are no overdue payments that may be piled on you because you were clueless about them.





5. Disregarding outstanding rent


There are often regular rental agreements signed by the hotel for daily supplies, furnishings, etc. So take an inventory of all the hotel assets and how many of them are rentals. Request a full history of those rentals to confirm none of the rent is still due to be paid. Such small expenses could pile up to create debts for you after you sign the deal unaware of them.


6. Not checking bookings


Apart from regular check-ins hotels hire out halls and conference rooms for corporate and private events. Take note of all the future bookings made by clients. These usually have advance deposits so you have to be certain all of those payments have been paid to you not the seller.



Comments

Post a Comment

Popular posts from this blog

The upward push of the posh lodge enterprise

  The record of the upward thrust of the luxury resort industry is a fascinating tale. With the start of the industrial revolution, within the 1760s, accommodations started to be built throughout Europe and the united states. Later, vacation motels began to pop up along the French and Italian Riviera. In Boston, The Tremont residence becomes the primary deluxe motel in a town center. It furnished "inside lavatories, locks on the doors, and an 'a l. a. Carte' menu." According to  Dimitris Kosvogiannis , the Holt lodge in the big apple city turned into the first to provide its guests with a boost for his or her bags. In 1822, in Venice, Giuseppe Dal Niel transformed an old palace right into a motel and gave it the name, "Le Danieli." within the spring of 1834, Linn des Bergues was constructed on the shore of Lake Geneva. In new york, the new york lodge became the first lodge to be ready with personal lavatories. In 1970, the creation of hotels began to boom a...
Post a Comment
Read more

Food Industry Tenders for Global and Local Food Supplies

One necessity that can't be administered by individuals is food. Regardless of whether one is at home or on movement, food is an irreplaceable piece of human existence. Nonetheless, there are numerous kinds of food industry tenders on the lookout. According to  Dimitris Kosvogiannis , some of them are enormous scope while others are not huge. Some of them are worldwide in nature while others could be confined. However, this large number of tenders offer great open doors for business. Worldwide Tenders for Large Enterprises Worldwide tenders on food articles are for the most part drifted by global associations and states of different nations. World Health Organization for example drifts food industry tenders at intermittent spans. Data connecting with such tenders are accessible on the WHO and UN sites and particular government official entryways. Other than that; there are likewise a few instructive sites that offer data regarding these tenders. A portion of the items for which nor...
Post a Comment
Read more

How to succeed in the difficult food market | Dimitris Kosvogiannis

The owners of companies around the world believe that food packages are as important as the product itself. Play an important role in the product. Indicates its uniqueness and distinguishes the product from competitors.  Dimitrios Kosvogiannis   provides travelers with the necessary accommodation, service apartments, and food. The food marketing services company knows an important raw material for successful efficient design. They know how to move competitors stand out at the closing of the packaging.   Packaging Points to Remember   1. Show Advantage   Many brands try to show the ease of use or taste of their products. Instead of showing these things, it is better to focus on what you do for clients. Customer-centric branding is the key to improving sales.   2. Check your competitors   Do you know where the package will be displayed? Know where the food will be placed in the store. Understand the strategies of competitors and ...
Post a Comment
Read more