Hi all,
I'm looking for some advice as to what we should do regarding the sale of our Hotel.
We have been on the market for over 4 years now & have had little interest and I'd love to get some ideas from you as to why, or perhaps what we can do to generate interest. Our agents solution is - drop the price. We've already done this with still no interest.
Here's some background:
It is a pub in a one pub small country town with a residence attached.
The building is over 100 years old and in reasonable condition, however, is showing it's age.
It's on 3 acres and 2 separate titles, one title is a vacant block
We purchased it in 2006 - freehold and business
We are trying to sell the freehold and business, we do not want to sell the lease as we want a fresh start and need the capital to do so
In the 8 years we've had the business it has increased significantly, turnover of $200K up to $550K
In the four years it has been on the market the business has continued to grow with the net profit increasing by over $60K in this time, however the asking price is reducing.
The abridged net profit is about $160K
Our asking price is $490K
We were told that a return of 20-22% is required for a small country pub, which brings the asking price to 730-800K, well above ours!
Over the four years we've added more selling agents and are now listed with 4 agents
We continue to improve the building as our budget allows (ie we spent $14K upgrading the kitchen & cool rooms this year), but are hesitant to spend too much as it seems we wont get any return on this.
So my questions are:
1. Should we take it off the market for a while?
2. Are we listed with too many agents?
3. Should we invest more money renovating or should we spend money on marketing the sale?
Thanks in advance, any advice would be greatly appreciated!
I'm looking for some advice as to what we should do regarding the sale of our Hotel.
We have been on the market for over 4 years now & have had little interest and I'd love to get some ideas from you as to why, or perhaps what we can do to generate interest. Our agents solution is - drop the price. We've already done this with still no interest.
Here's some background:
It is a pub in a one pub small country town with a residence attached.
The building is over 100 years old and in reasonable condition, however, is showing it's age.
It's on 3 acres and 2 separate titles, one title is a vacant block
We purchased it in 2006 - freehold and business
We are trying to sell the freehold and business, we do not want to sell the lease as we want a fresh start and need the capital to do so
In the 8 years we've had the business it has increased significantly, turnover of $200K up to $550K
In the four years it has been on the market the business has continued to grow with the net profit increasing by over $60K in this time, however the asking price is reducing.
The abridged net profit is about $160K
Our asking price is $490K
We were told that a return of 20-22% is required for a small country pub, which brings the asking price to 730-800K, well above ours!
Over the four years we've added more selling agents and are now listed with 4 agents
We continue to improve the building as our budget allows (ie we spent $14K upgrading the kitchen & cool rooms this year), but are hesitant to spend too much as it seems we wont get any return on this.
So my questions are:
1. Should we take it off the market for a while?
2. Are we listed with too many agents?
3. Should we invest more money renovating or should we spend money on marketing the sale?
Thanks in advance, any advice would be greatly appreciated!