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 well-established and updated seasonal motel has a long history of supporting tourists and workers and is ideally located alongside a major transportation route, just steps away where you could launch your boat if you were so inclined. The nicely updated property offers a combination of stable revenue, excellent location, and growth potential, making it a standout choice for investors seeking a lucrative hospitality asset.
Key Highlights:
- Significant updates done in recent years
- Open from mid/late April - mid/late November, ability to be open in longer if you choose.
- Perfect size property for a hands own owner
- Consistent revenue growth the last 3 years, survived quite well through Covid
- High demand from local businesses ensure a steady stream of annual income.
- Situated in a picturesque coastal area with high tourist and business traveler traffic.
- Excellent visibility and accessibility from major highways and transportation hubs.
- Room for expansion or ability to increase average room rates to create additional revenue.
- Sizeable parcel of land with potential for future development.
Its reputation for cleanliness and affordability have lead to a loyal clientele who support a solid foundation for continued success. With numerous opportunities for growth, investors can expect meaningful returns and long-term value appreciation.
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
Fiscal Year End is December 31. Revenues and Seller's discretionary earnings.
2023
Revenues: $262K
SDE: $156k
2022
Revenues: $202K
SDE: $109k
2021
Revenues: $144K
SDE: $72k
Annual Return on Investment
Based upon a purchase price of $749,000, 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 31% ** (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. Feel free to run some of your own calculations here:
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator
Real Estate
Located on approximately 4.2 acres of land, serviced with on-site sewer and well. Many important upgrades have been done in recent years, including roof, windows, mattresses, etc. No concerns identified during inspection. Septic tanks are pumped annually.
There are 4 buildings making up the 17 rooms, with 5 of them winterized and able to be opened in the winter should a new owner choose.
The seller's principal residence is adjacent to the building, it is a beautifully updated 3 bed 2 bath home with approximately 2,000 square feet of main living space + developed basement of approximately 1,300 square feet. The anticipated value is $400k and the owners would be open to a sale. Please note, there is a shared well with the Motel and the main laundry facility for the motel exists in the basement area of the house.
For more information on this listing, please complete our Non-Disclosure Agreement
Complete NDA for Full Overview
