Is it wise to sell off a hotel?

[Rimsha kanwal]

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?

Here are top reasons why a hotel sales job is a promising, fulfilling career path in the hospitality industry: Guaranteed diversity in day to day responsibilities. High paced work environment. Consistent team interaction

 

[Afrinish]

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?

 

[Peppul]

Well it depends on the hotel am selling off, if the hotel is making more cash why would I need to sell it off in the first place but if it's not I can decide to hire a professional that can help with the advertisement of the hotel and also try and change the facilities and do some upgrades on the hotel and the other option is if am offered 10x the value of the hotel I can sell it off.

 

[Adeyoola7]

As the income earned from the hotel remains with the seller until it is transferred this lower income would also hurt the current owner as well. It is also worth considering the impact of sale upon a franchised or managed property.

 

[shakky2]

investing in hotel business nowadays is a very lucrative business and it's a profitable one.he should try more in sourcing for funds so that he will be able to complete the hotel

 

[joy101]

Yes of course, if the price is value to he, he can go ahead to sell it, since there is no funds to complete the hotel, before selling the hotel he should know much he has spent on the project, how much he is selling out the hotel for the moment.

 

[singlej007]

He a alone knows his source of fund, if he still have the same source of fund he use in funding it, I will advice him to keep patient, gather more money and compete it, he will profit more when he finish... There is always a low price tag on uncomplicated building, buyer tend to take advantage of you if they realize you are selling under conditions.
[automerge]1610910238[/automerge]
He a alone knows his source of fund, if he still have the same source of fund he use in funding it, I will advice him to keep patient, gather more money and compete it, he will profit more when he finish... There is always a low price tag on uncomplicated building, buyer tend to take advantage of you if they realize you are selling under conditions.

 

[Osaz96]

Real estate is a really big and profitable business, the land and the building on it will continue to appreciate in value everyday so I think he should be patient but if his needs are very pressing and demanding he may sell it but I tell you he'll feel bad about it in little time to come

 

[Janita]

Selling hotels gives so much profit to the person specially if the person start building the hotel or whatever he stoped in the mid he can sell it on high demand prices.
Those people who ran business and after running they want to sell this is gonna reach to high lucrative profit as many of the buyers are on wait to buy this type pf constructiom.

 

[Aniwhyte]

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

You're absolutely right on this, the cost of selling should be much more higher than the amount he has spent on it so far.

 

[Khezo]

If he can generate more funds then he should be patient and hold on but the way I see it, seems he needs the money so the selling would not be a bad thing for him. Hotel is a good investment but if you can't maintain it, he should sell it off

 

[Taimoor Jutt]

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 don't think so, that it's a wise decision. 1st of all he wouldn't start to that hotel to build before estimate the expenses of building. But he started and let it incomplete which was not the good sign . He should remain patient and get loan after that he start this again till completion. By this he'll get many more.

 

[Adegbindin Abdullahi]

It's not advisable to sell an hotel just like that,because hotel business is a very lucrative business in a country like Nigeria where we have a lot of heavy spenders. In Nigeria people love flexing and merriment and running your hotel is a great avenue to tap this source of revenue

 

[EMMANUEL]

You see selling an hotel be for the fact that there's less patronage, the cause can be based on location the particular structure is situated. Selling off the hotel shouldn't be a next option, because you can as well try to rehabilitate the building by giving another look of different purpose like giving it out for rent or space for event or better still meeting center.

 

[Trexxxy]

If he has tried all his possible best to source for funds to complete the project and he keeps falling short then I don't see why not. My advise would for him to give it a push one more time to actualize the goal and if not he can then proceed to sell it.

 

[Holluwaphemmy]

It is not advisable to sell off an investment especially an hotel. No rather you'll lease It so that you'll be earning money from it tenurely. If you sell off the hotel, you will definitely run at loss because the money you used in building it plus the money used in buying the land would superior to the amount you sold the hotel

 

[Chumzy]

No one sells off a good investment, weather it is a hotel or a business of any sort. So the point am trying to make is, determine if the hotel is in good hands, if you can manage it. If you can't make the best out of it, for any reason then sell and reinvest in any other ideas you have and you think you can make better.

 

[btaliat]

He can still seek fund elsewhere, since he has started he should find a away of completing it. If he endures to complete it. He will make millions fold of his capital along the line.

 

[tuna89]

If he thinks that is the only option available to get some money to stabilize himself, he then has to sell it off especially if urgent, he should make sure he values the property to be able to sell it at a good price, he also has to make sure he makes good use of the cash after selling so as to achieve continuous better life.

 

[Alexandoy]

An incomplete building is hard to sell because the buyer may have difficulty in the completion of the structure. But if it will take a big capital to finish the hotel then the best move is to sell and try to find a willing buyer who has the capacity to finish the building so it can be profitable. Wait, I think you can enter into a partnership if you can find a financier for finishing the hotel. You can maybe agree on the sharing of the proceeds once it is done and it is sold.