Being in the hospitality business means you’ll need to stay on top of trends and challenges. If you are on the hunt for a new property, here are some of the things you might need to discuss with your hotel brokerage firm.
Expect operating profits to take a hit after the recent labor squeeze. Investing in a smaller crop of employees who can take on more tasks, recruiting high school talent as well as immigrants are just a few of the ways to solve the labor problem.
Increasing property values
Hotel property values will continue to rise by up to 5 percent. That makes it an ideal investment asset and one of the many reasons while you’ll want to start checking out hotels for sale.
Minimum wage hikes
Rising minimum wage margins will affect profits for hotel businesses. That’s an issue tied up to the industry’s labor problems.
More and more companies are connecting to their clients through an app. The app provides a digitalized guest experience, one that makes it easy to promote services/products to clients.
It’s still an investor’s market, with about 78 percent of owners thinking about refinancing in the next 12 months. That could mean lower interest rates, one you’ll want to take advantage of when you buy a hotel business for sale.
67 percent of hotel owners still believe rebuilding is a good idea. It can attract more revenue to the property, with guests booking in to enjoy the facilities.
Hotels that are above average in quality and are available for sale won’t exactly land at your feet. Hotel brokerage services can make your life easier. If you want to invest in a hotel, get a broker to guide you along.
Bad hotel markets
Location matters a lot. Just because a hotel is available doesn’t mean it’ll make for the ideal choice. Steer clear of hotel markets that will generate you little to no profits.
Opportunity zone investment
These zones can offer you the deal of the lifetime, with tremendous tax-cuts and cost-savings. Find out if you quality for the deal by talking to your broker. It might turn out to be the best solution for you.
Some say a recession is coming. Whatever the case, be sure you’re ready with your business. If you want to make the most out of your hotel purchase, then start learning the ropes. Find the right property and get our hotel brokerage agents from NewGen Advisory for advice and help.