Updated and Successful Motel Cottages and Suites

Description

Ideally located in a growing Nova Scotia town, this bustling Motel, Cottage, and Suites business with nearly 40 units has wonderfully withstood the ups and downs of Covid and is perfectly set to take advantage of the new economy and the re-opening of Yarmouth / Bar Harbour ferry service. With many updates done around the property over the last 2 years, this year round operation would greatly benefit a hands on couple. The current owners do not work on property and there could easily be room for efficiencies in operations and cost controls.

 

A few highlights include:
- 4+ star reviews with over 12,000 reviews!
- Excellent CRM and Booking System
- 6 staff are currently (Winter) operating the business (3 cleaners, 2 administration, 1 maintenance). Ramping up to 8 or 10 in summers
- Some units completely overhauled, new roofs, many new bathrooms
- Decades of history, many long term corporate customers
- On site Pool.

 

The sale is structured as a sale of 100% of the authorized and issued share capital of the company. Working Capital shall be adjusted at $0. 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. The sale is structured as a sale of 100% of the authorized and issued share capital of the company. Working Capital shall be adjusted at $0. 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

Annual Room Revenues for the business:

2021 YTD (as of Dec. 1) = $

2020: $427k

2019: $637k

2018: $788k

2017: $731k

 

Seller's Discretionary Earnings:

 

* * 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, with the balance of the agreed upon business value being financed over 20 years. 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

A wonderful mix of Suites, Cottages, and Motel Rooms positions this business to cater to a diverse clientele and earn its reputation as one of the top accommodations business in the area. Situated on approximately 2.65 acres and serviced by town water and sewer.

 

Annual property taxes are approximately $41,000