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Full Service 67-Room Hotel in Major Oil & Gas District

Description

This well cared for full service
non-franchised hotel located in an important Oil&Gas town is quickly tracking towards revenues experienced in 2014, which were in excess of $2.2M, produced more than $700k in profit, and was appraised in excess of $8M. There are 67 guest rooms, a completely renovated 210 seat lounge, 10
VLTs, banquet
rooms, and a 173 seat restaurant that is currently closed but can be reopened with a little work.

 

Whether this is your first hotel investment or your 20th, this property and sale is well positioned for a successful transition, with the owner attending to many of the most important matters of the building and rooms, while improving the reputation and following of the property.

 

The sale is structured as an Asset sale. By completing the NDA and becoming a qualified buyer, we'll be happy to send you a full Offering Memorandum that will answer most all of your questions.

Financial Information

For the 12 months ending March 31, 2022, revenues were $1.4M with Seller's Discretionary Earnings of $387k. 2023 projections are for revenues to be in excess of $1.75M with SDE to be close to $500k.

 

* 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.

 

** Our expectations are for a minimum 35% down payment on the final negotiated purchase price. 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

The concrete hotel, which was built in 1974 and expanded in 1990, is located on a very large 4.60 acres located on the main road through this bustling town. All town services are supplied, water and sewer.

 

A recent environmental review has been completed confirming the property is free and clear of contamination risk.