Updated 5 months ago on . Most recent reply
Hotel Deal Advice
Hi BP Family -
I’m seeking advice on a deal I am working on. I currently have a 129 room exterior corridor hotel under contract. The hotel is banked owned and I will be purchasing it at a very attractive basis (sub $15k a key). As of today they hotel only has 50 rooms open and does around $700K in revenue which is really good for the current room the room condition. My plan is to take the 129 room and make it into a 120 room dual branded hotel to capture both the economy and extended stay customers. I have had talks with multiple brands and have gotten approved for a couple of good options. The deal seems to be a home run on paper. I visited the property twice and believe the hotel can make more money if “we put some love into it”.
Here are my problems:
1) Bank will only fund the purchase price of $1.7M, however will not fund the $1M of Reno funds that I need.
2) I am not able to run the property myself. I live in FL and the property is located in Louisiana. So I would need to find a partner to be an owner operator and live on site (as most motels in America do).
Question: Is it worth pursuing this deal if I’m not there? Do you think I’ll be able to find a local to run the property for me?
Feel free to ask me any questions!