How to buy a hotel ?
Click here to download a business sale agreement if you want to purchase a hotel.
Tourism is of the world’s biggest industry and the UK is one of the most popular destinations. This makes buying a hotel a viable venture. But how to choose the right one and ensure its success? Read on to find out.
The UK tourism sector
After Brexit, the UK economy has been in a state of flux, which together with tightening corporate budgets and slow supply growth, the future of sector remains somewhat uncertain.
Hotels in London
Hotel in London have been largely unscathed by the affect on the tourism industry in the UK despite Brexit. This is largely because some international companies remain in London, making travel to London unavoidable.
Hotels outside London
In the recent years, effort has been made to attract tourist away from the UK’s main attractions. This is resulting in hotels outside of the London to have reasons to remain hopeful.
Some hoteliers choose to drop their rates when the times are challenging only to drop their standards as well when the margins become tight.
In the hotel business, you will have to be adaptable and flexible in order to tackle the hurdles which may come your way. There are a lot of things that go into running a successful hotel; you have to manage cooking breakfast, cleaning the rooms, accounting, and digital marketing, hospitality skills.
Accounting and book keeping is an integral part of running any business.
In order to survive today, you must have a strong online presence and provide online booking facilities. Additionally, it is an excellent medium to advertise your business.
Some important points
Do your research – You should investigate every aspect of the business, the local area and the demography of the area.
Major lifestyle change – Running a hotel will require you be on call at all times. It will take a lot of hard work.
The process of due diligence is one that provides a thorough investigation into a proposed investment transaction. It means you check the investment worthiness, and assess the full claims made by the owner. This check is usually performed by a solicitor and accountant who act on behalf of the buyer. A large portion of due diligence will involve checking financial statements and accounts.
Click here to find more about due diligence.
If you buy wisely and do thorough research of the background and potential of the business which attracts your interest, you will get immediate access to the existing base of customers and suppliers. This will ensure that you know what you are getting into.
You need a solid contract
You, as the buyer, will have to produce the sale document. This agreement will have to cover the mechanics of the deal – what is being sold, where it is, how it is to be transferred, and so on. This is where warranties come in. Click here to download a business sale agreement if you are purchasing a hotel.
Warranties which are legally binding promise as facts about the business, which provide information relating to the business. Click here to know about how warranties work and why they are important.
Other documents you need
Additionally, you may need assignment and novation agreements to transfer contracts the seller is a party to.
If company shares are being sold, then you will need directors service agreements, board minutes to document approvals to changes, and possibly, a new shareholders agreement and new articles of association.
We can help you find exactly what you need for your circumstances if you contact us and ask.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
We would love to hear what you think about this article and how we could improve it. Please do let us know. However, we shan't be able to reply to your specific questions. If you have a question about a document, please contact us.
If you have noticed a bug or a mistake on this page, or just want to give us feedback, we'd love to know. Nothing is too small or too big. Send your message on this feedback page.