3 Steps to Selling Your Accommodation Business

Many accommodation business owners reach a stage where they consider selling to enjoy the rewards of their hard work. If you're at that point, now might be the perfect time to sell.

As the job market shifts, more individuals are eager to take control of their futures by running their own businesses. To stand out in this market, it’s essential to make your accommodation business the most attractive option for potential buyers.

Step 1: Assess the Value of Your Business

Determining the value of your business can be a complex task, and it’s highly recommended that you seek assistance from a professional broker, or someone experienced in the industry to ensure accuracy.

Several factors contribute to your business’s true value, including:

EBIDTA: Earnings before interest, depreciation, drawings, tax and Amortization.

Property Value: The value of each room or apartment, or the entire property.

Capital Expenditure: The amount of future investment likely needed over the next five to seven years. Refurbishing bathrooms, for instance, can be a significant cost.

General Condition: The current state and upkeep of the property.

It’s vital that your valuation is realistic to attract serious buyers. This is where industry experience plays a crucial role.

Step 2: Prepare the Paperwork

Buying a business is a significant investment, and buyers need reassurance through detailed documentation. Ensure you provide the following:

• Profit and Loss Reports

• Marketing Activities and Budget

• Supplier Contracts and Agreements

Your broker will assist in creating an ‘Sales Summary’ to attract investors. This document should provide key details, including:

• A short executive summary

• Main features of the business

• Details about the location and surrounding areas

• A description of the property

• Market trends in holiday accommodation

• Economic and management performance

• Photography

• Drone Presentation (creates offers without a site visit)

• Conditions of the sale offer

As preparing this document can be challenging without experience, it's highly advisable to work with a professional broker to ensure its thorough and accurate.

Step 3: Showcase Your Property

To attract high-quality buyers, presenting your property in its best light is essential. Proper maintenance, cleanliness, and curb appeal are vital. Consider having the property professionally pressure-washed to restore its appearance. Make sure the paintwork is in good condition and that the landscaping and gardens are well-maintained.

Keep in mind that most accommodation businesses require a full refurbishment every ten years, with soft furnishings typically replaced every five to seven years. If you’re considering refurbishing before selling, seek professional advice to avoid overextending your budget and to ensure a solid return on investment.

Get the Support You Need to Sell Your Accommodation Business

If you're considering selling your business and want the best chance of attracting buyers, AquaTerra Brokers offers the expertise and guidance you need. Whether you’re ready to sell now or simply exploring your options, our team is here to assist. Contact us for more information on how we can help.

PLEASE GET IN TOUCH WITH AQUATERRA FOR FURTHER ASSISTANCE