How to evaluate a small vacation area hotel (40 rooms in OBX, NC)
I live in the Outer Banks of North Carolina. Two small beachside hotels have come up for sale (see LoopNet) and I would like to know if there are any tools other than CapRate and NOI to help me with deal analysis. I have been provided a Pro Forma from the listing broker, and it appears that there is some room for improvement on the numbers, especially vacancy during the peak season. This is a vacation destination and we really only have 3 busy months during the summer. I would like some help in evaluating a hotel, determining what to consider when evaluating and making a decision on purchase price, and I would like to know what sort of "tricks" to look out for. Any help you can provide is greatly appreciated.