Make a smart investment when shopping for hotels.
Buying a hotel property is a major investment. With everything that’s at stake, it’s important that you select a property that will perform well in such a competitive market. But, how can you determine if a property is a worthwhile investment? Here are some of the questions to ask yourself.
- Is the Property Up to Code?
One of the major benefits of buying an existing hotel property is that it is more time and cost-effective than building a hotel from the ground-up. However, if the completed hotel you are considering is not up to code, then this can throw a major wrench in your plans. When it comes to code compliance, do not simply trust the word of the previous owner. Instead, you should personally review local and federal regulations and hire a professional contractor to inspect the property and determine whether or not it meets official requirements. If the property you are interested in is not up to code, this doesn’t necessarily mean that it is a bad investment. However, you will need to take more time for renovations and inspections before you are ready to open the hotel for business. So, factor this extended timeline into your decision.
- Is the Property in a Good Location?
When it comes to determining if a property is located strategically, there are several factors to consider. First, you should think about the property’s proximity to major travel destinations. Hotels that are located near popular attractions, such as major metropolitan hubs, geographical landmarks, or entertainment centers, get more bookings than hotels located in nondescript areas. However, it’s also important to note that hotel properties in popular travel destinations tend to be more expensive and face stiffer competition. When considering a hotel property, you must consider both the positives and the negatives of its location and determine whether you can take the risk.
- Who Is My Target Audience?
Finally, before buying a hotel property, you should identify your target client base. For instance, if the property is located near a major city, then you can expect to get a mix of business and leisure travelers. If the property is located near an amusement park, your demographics will be skewed towards families with younger children. If your property is tucked away in an area of natural beauty, you can expect a greater number of young vacationers and couples. Once you have identified your target market, you should think about how you can transform the property to appeal to these guests. Consider working with an experienced contractor to walk through the hotel with you so they can provide insight into your plans for renovating and updating the property.
These are some of the important questions to ask yourself when buying a hotel property. Looking for an experienced team of contractors to bring your hotel vision to life? Then contact Nikki Fox at Parkwest General Contractors at Nikki@ParkwestGC.com. Our dedicated team is eager to assist you with all your building renovation and upgrade needs today.