Hotels and Motels for Sale in Washington State
Purchasing a hotel or a motel can be a great business opportunity and investment for entrepreneurs looking for an additional income stream. However, there are a lot of things to consider with these types of purchases so it’s a good idea to seek the advice of experts before diving in.
The team at Teletare are seasoned commercial real estate experts and have been helping people find hotels and motels for sale in Washington State for years. We regularly have dozens of hotel properties listed on our website in neighborhoods like Capitol Hill, Central District, Mt. Baker, West Seattle, Beacon Hill, and more. By using the advanced search features on our website you can quickly find properties that meet your criteria.
Motels vs Hotels: What’s the Difference?
If you’re thinking of purchasing a hospitality property the first thing you’ll need to consider is whether you want to buy a motel or a hotel. Both property types are similar, but there are some key differences so make sure you choose the option that best suits your desired business model.
Motels are generally smaller than hotels, making them a more affordable investment. They are primarily located outside of cities near major highways and are geared towards travelers who are on their way to another location. Because of this, motels feature fewer amenities and more simplistic rooms.
Hotels are larger properties that are generally located closer to cities and urban areas. They often feature many amenities, such as restaurants, room service, gyms, and other activities. Hotels are geared towards people and families who are on vacation and looking for a longer stay.
How to Evaluate Hotels and Motels for Sale
Hotels and motels are more complex than most commercial properties, due to their large number of rooms and amenities. Here are a few tips to help you evaluate any hospitality property you may be interested in:
- Profit & Loss Statement: One of the best ways to evaluate a business is to look at it’s profit and loss statement (P&L) over the last three years. This will let you know exactly how profitable the business has been and if there’s any room for improvement.
- Operating Expenses: Review the operating and maintenance expenses over the last three years in order to estimate your costs moving forward. It’s also a good idea to have a surveyor do a thorough inspection of the entire property and all the buildings to see if there any issues that might increase your future expenses.
- Occupancy Rate: How busy is the hotel or motel? Look at the occupancy rate over the last three years or more to see if the rooms are regularly full. If the occupancy rate is consistently high it likely means the property has a good reputation and there will be fewer marketing expenses.
- Average Rate: Review the average rates charged over the last three years or more. If the property consistently has to offer low rates to attract guests that could be a bad sign. You’ll also want to see how the rates compare to other similar properties to determine if there’s room to raise them. Finally, compare the average daily rates for each month in a calendar year. This will let you know if there’s any seasonality to the business and help determine what the busiest times of the year are.
- Decor: Out of date or unattractive decor can discourage visitors from staying with you, so make sure to consider the decor of any property you look at it. If you feel you’ll need to make updates it will be an added expense.
- Amenities: Having additional amenities can increase business, but they will also create more work for you and your staff. Think about what amenities are important for you to have before you begin looking for hotel properties for sale in King County.
Types of Hospitality Properties
Teletare offers a wide range of hospitality properties, including:
- Amusement facilities
What to Look for in a Location
Location is important for any business, but that’s especially true for hospitality properties. When you’re looking motels and hotels for sale in Washington State, think about the following factors to ensure you maximize your business:
- Proximity to Airports: Hotel and motel guests are always coming and going, and many of them will be flying to and from your location. The closer you can be to an airport the more convenient you’ll make it for your guests.
- Proximity to Activities: Guests who are planning to stay with at your property for a longer period of time will want to have easy access to things like restaurants, beaches, parks, golf courses, and other activities.
- Competition: Try to find a property that isn’t near a large number of other hotels and motels. That way, if people want to stay in your area they’re much more likely to stay at your property.
Find the Perfect Hotel or Motel
Are you ready to start looking for hotels and motels for sale in King County? Our team can help you find the perfect property to add to your portfolio.