Is it wise to sell off a hotel?

[Nma]

Few years back a relative of mine started building a hotel but along the line he ran out of funds and left the building uncompleted.... He has put it up for sale... Is it wise for him to sell off the property uncompleted or should he be patient to realize more funds then go on to complete the building?

 

[Timmyjae]

Hotels can be an excellent way to generate income and build long-term wealth, especially when the economy is strong. Unlike most types of commercial real estate, hotels can adjust their room rates on a daily basis.
Before proceeding with selling an hotel you got to ask yourself a few questions...
Is your business in a good shape to sell? Is the market favourable to sellers or buyers right now? Is this the right time in your life to make the move? Do you have the time and energy required to focus on the sale?
In my opinion, it depends on what state the business is, and that will determine whether or not to sell.

 

[Dubai]

Yes, if the price is right you can sell off an hotel. In fact, almost anything can be sold with good price. Just try to make sure you are not being duped or hoodwinked by your potential buyer.

 

[Aniwhyte]

It depends on how much money he has spent on the hotel already, and how much he is selling it right now. If he is selling it more than the amount he has spent so far then I don't see any problem with that as he no longer has the fund to continue. With the proceed he got from selling the hotel off he can as well use it to build some smaller houses and put them up for rent.

 

[Abibatabosede]

Hotel business is a very lucrative business which can always fetch money.so I don't see any reason why hotel should be sold rather you should think of better approach towards making money from it.

 

[Setho]

In life, not everything has to go as planned and there can be failures and disappointments along the way. You should know that, I think his decision depends on a fore sight. If you are building a hotel in an area with other hotels that has innovations you think you cannot match, then I advice you sell it off to more competent hands because if you eventually build it, your competition might kill you.

 

[Sincerem]

If you feel to part ways of your hotel structure base on other plans you had for life. That's okay, you can still recoup money from selling it. Because hotel business is something that generates money and when selling it, you'll sell it base on the worth.

 

[Sariana23]

Selling the hotel would be a real shame, as it is a huge revenue stream. Personally, I think I should finish building it and if possible keep the property. If you do not have the capital to complete your project, you have no other option but to sell the hotel and get your investment back.

 

[Naz Noshin]

Few years back a relative of mine started building a hotel but along the line he ran out of funds and left the building uncompleted.... He has put it up for sale... Is it wise for him to sell off the property uncompleted or should he be patient to realize more funds then go on to complete the building?

He should wait and collect funds to complete the building then he can sell the hotel and he ll get good profit. But if he is very needy then he can sell it right now because there is no other way.

 

[chalcedony8]

Selling a hotel is not a good I deal to, except the owner is unable to finance and manage the hotel, hostel are very profitable especially if they are in a good location, selling them off it's not a nice idea

 

[Donkiz]

Few years back a relative of mine started building a hotel but along the line he ran out of funds and left the building uncompleted.... He has put it up for sale... Is it wise for him to sell off the property uncompleted or should he be patient to realize more funds then go on to complete the building?

One thing with

Few years back a relative of mine started building a hotel but along the line he ran out of funds and left the building uncompleted.... He has put it up for sale... Is it wise for him to sell off the property uncompleted or should he be patient to realize more funds then go on to complete the building?

Establishing a business like hotel requires lot of fund to make look good. One of the things that people look out for when lodging in a hotel is the ambience. So completing the building is the first step, while equipping the hotel and bringing it to appreciable standard is very key. If the owner does not have the financial strength to complete the building and cannot secure a loan from bank to that effect, it's better he sale it off to someone that has the financial strength instead allowing the building to depreciate.

 

[Aniwhyte]

Hotel business is a very lucrative business, as it brings forward huge daily returns. I really don't see any reasons why one would wake up one day and chooses to see his/her hotel off most especially if the gains are still coming.

 

[Ralphjoe]

There is nothing else that he can do about the building other than to sell the hotel building since he is convinced that he won't be having money again to complete the building. There is nothing more that he can do other than to sell it and make his money back.

 

[zenith]

Investing in hotel is a good business but i will advise he approach financial institutions to see if he can get a loan to complete it.

 

[Bilal0087]

Few years back a relative of mine started building a hotel but along the line he ran out of funds and left the building uncompleted.... He has put it up for sale... Is it wise for him to sell off the property uncompleted or should he be patient to realize more funds then go on to complete the building?

I think it's note wise to sell the property without completing it, because if someone sale a building with out completion, he can't get the high profits, as the buyer will never be agree to pay more for incomplete building.

 

[Hassan14]

Few years back a relative of mine started building a hotel but along the line he ran out of funds and left the building uncompleted.... He has put it up for sale... Is it wise for him to sell off the property uncompleted or should he be patient to realize more funds then go on to complete the building?

Of course if you are getting the right price then you must sell the hotel because getting a good price will only benefit you and you have to take care of what price he is selling it to you and in that he will give you If you are not cheating, you just have to take care of these things in such things.

 

[Erik4150]

A hotel is a very good investment that could turn out to be very profitable in the future. If your friend can take loans from family and friends, he could finish the project but if it is absolutely necessary that he sells it and get back his money then he should do so.

 

[Damismiling]

It depends on how much money he has spent on the hotel already, and how much he is selling it right now. If he is selling it more than the amount he has spent so far then I don't see any problem with that as he no longer has the fund to continue. With the proceed he got from selling the hotel off he can as well use it to build some smaller houses and put them up for rent.

You are right, it depends strongly on how much as been spent on the project and how much he is selling out the hotel for at that moment, it should be noted that, the cost of selling should be more higher than the amount of procurement and all the money spent on the project to that level

 

[Seun4luv]

Is not wise to sell of an hotel. Hotel business is a good and reliable and lucrative business to invest into. Most people patronize hotel always like travellers the use hotel as a lodge. Drinking and enjoyment

 

[GIFTMICHAEL]

There is nothing wrong with outrightly selling your hotel.
There factors that can warrant outright sell of your hotel.
When you sense that you don't have the money to run maintenance you can sell off your hotel.

If you have a new line of business in mind.