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45+ Room Motel with Restaurant

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Price: $1,929,000

Annual Revenue: $630,000

Minimum Equity Required: $500,000

SDE: $175,000

Location: New Brunswick

Industry: Hotels, Motels, Camps and other Lodging

ID: 1406

Status: Sold

Description

This hospitality business featuring 45+ rooms and owner quarters is a prime investment opportunity for a hands on operator who has a heart for delivering exceptional services and improving business performance and results. Price, cleanliness, and comfort have been the driving reputation factors for this business which caters to leisure and business travellers as well as those in need of monthly rentals. The property offers a variety of accommodation options, ensuring a comfortable stay for all guests.

Driven by its strategic location near major attractions and corporate offices, there are strong occupancy rates during the busy summer tourist season and a strong demand during the winter season for monthly rentals of the kitchenette units. The on-site restaurant serves delicious local cuisine, providing an additional revenue stream.

With a dedicated management team and efficient operation systems, the business is well-positioned for a seamless transition to new ownership, making it an attractive proposition for investors seeking a stable and profitable venture with opportunity for growth.

The owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.

By completing the NDA and becoming adequately qualified, you will be be sent a full Offering Memorandum that will answer most, if not all, of your questions.

Financial Information

Annual Revenues and Seller's Discretionary Earnings
2023
Revenue: $505,000
SDE: $165,000

2022
Revenue: $750,000
SDE: $200,000

2021
Revenue: $715,000
SDE: $150,000

Annual Return on Investment
Based upon a purchase price of $1,929,000, with an average portion of the purchase price being financed with normal commercial finance terms, we anticipate an annual Return on Investment of more than 20% ** (Details of these calculations provided upon request).

* 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.

** Please refer to our Minimum Equity requirements. Our expectations are for a buyer to be "capable" of making a minimum 35% down payment on the final negotiated purchase price, to be considered truly qualified. Feel free to run some of your own calculations here:
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Operations

There is a total of 2.02 acres and the property is approximately 25 years old (Effective age), built on a slab foundation and full poured concrete foundation.
Water and Sewer supply is municipal.
Heating and air conditioning are provided in the office areas by roof-top HVAC units. Heating in the storage area is provided by radiant tube units.

There is a 3 bed / 3 bathroom apartment that has previously been used for owners' quarters, requiring renovation of approximately $50k.

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA For Full Overview
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