Gateway Business Brokers has determined the owner/seller has met our qualification standards of being an established, profitable, bankable business. This is the starting point of our SCS system that has proven to deliver results 3x or more industry standards and helps those we work with experience our mission of receiving the highest customer satisfaction ratings in North America. To obtain a thorough overview of this business, hit the CONTACT SELLER button. Once completed, you will receive an automated email from our system that will provide you with a link to complete a Non-Disclosure Agreement (NDA).
Description
This hospitality business featuring 45+ rooms and owner quarters is a prime investment opportunity for a hands on operator who has a heart for delivering exceptional services and improving business performance and results. Price, cleanliness, and comfort have been the driving reputation factors for this business which caters to leisure and business travellers as well as those in need of monthly rentals. The property offers a variety of accommodation options, ensuring a comfortable stay for all guests.
Driven by its strategic location near major attractions and corporate offices, there are strong occupancy rates during the busy summer tourist season and a strong demand during the winter season for monthly rentals of the kitchenette units. The on-site restaurant serves delicious local cuisine, providing an additional revenue stream.
With a dedicated management team and efficient operation systems, the business is well-positioned for a seamless transition to new ownership, making it an attractive proposition for investors seeking a stable and profitable venture with opportunity for growth.
The sale is structured as a sale of 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition. See Financial section for more details.
By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most, if not all, of your questions.
Financial Information
Annual Revenues and Seller's Discretionary Earnings
2023
Revenue: $505,000
SDE: $165,000
2022
Revenue: $750,000
SDE: $200,000
2021
Revenue: $715,000
SDE: $150,000
Annual Return on Investment
Based upon a purchase price of $1,929,000, with an average portion of the purchase price being financed with normal commercial finance terms, we anticipate an annual Return on Investment of more than 20% ** (Details of these calculations provided upon request).
* Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
** Please refer to our Minimum Equity requirements. Our expectations are for a buyer to be "capable" of making a minimum 35% down payment on the final negotiated purchase price, to be considered truly qualified.
Real Estate
There is a total of 2.02 acres and the property is approximately 25 years old (Effective age), built on a slab foundation and full poured concrete foundation.
Water and Sewer supply is municipal.
Heating and air conditioning are provided in the office areas by roof-top HVAC units. Heating in the storage area is provided by radiant tube units.
There is a 3 bed / 3 bathroom apartment that has previously been used for owners' quarters, requiring renovation of approximately $50k.
For more information on this listing, please complete our Non-Disclosure Agreement
Complete NDA for Full Overview
