Buying a hotel
A buyer's guide to hotels for sale in the UK
Now could be the time to avail of the range of smaller guesthouses and hotels for sale around the country. Prices are beginning to creep up on the back of the aforementioned demand, often from individuals in their thirties and forties facing redundancy from middle management careers, taking early retirement or simply seeking a lifestyle change.
UK hotels for sale: The numbers
Hotels for sale: Raising finance to buy
Up to 75% of the value of hotels for sale can be lent by banks and building societies, over periods of five to 25 years and usually at 1.5 to 2% over the Bank of England's base interest rate. Lenders will want to see a business plan, with evidence that a hotel's existing profit will cover twice the annual interest bill.
Final tips on approaching hotels for sale
- Research particular hotels for sale that grab your interest: why is a given hotel on the market? How long has the current owner been there and how much have they spent on improvements?
- Location: what type of custom does the hotel attract? Could you improve the business with a bar, restaurant or gym, for example? Checking with the local authority about other new budget hotels in the pipeline, planned bypasses or similar ventures that could affect trade is advised.