TWO HOTELS FOR THE PRICE OF ONEListing: #AL00013
About this Business for sale inTWO HOTELS FOR THE PRICE OF ONE
A Brief History - 30 Year Track Record
The Company has been in the hotel business since 1988. The first property—was built on a leased vacant lot in Makati City. It had 28 rooms. The lease terminated in 1998.
Revenues from that first hotel venture were sufficient to purchase a vacant lot directly behind it. The decision to purchase the vacant lot was made in order to secure a long-term permanent investment. The Hotel Inn was built in 1999. It boasts of a 35 room Inn with owners penthouse on the 5th Floor.
For further expansion, the 2nd Inn – is located literally 40 meters down the street from First Inn. A 5-storey edifice with basement and roof top deck was constructed on yet another purchased vacant lot.
In 2010, Hotel-Inn opened its doors. It boasts of 28 guest rooms, an in-house food and beverage outlet, a basement laundry to service operations and house stay-in employees.
The Hotel Inn has a market following. The current owners/management created a niche for themselves by way of excellent in-house service. They know most of their guests by name because they repeatedly return to the Inn when in Makati. The Hotel has a 30 year history after all.
Today, all bank loans have been fully paid, in advance. The two existing properties are now fully owned by respective corporations, wholly debt free and unencumbered.
The Benefits to the Prospective Buyer are they are purchasing TWO items of value namely —
- A real estate Asset and
- A Fully operational turn-key business
- 30 year track record
- Established Clientele
- All Government Licensing requirements up to date
- Perfect for Foreign Investor who is permitted to own shares of stock in Corporations.
While purchase of the properties may indeed proceed as a Real Estate Purchase, the most expeditious way for an investor would be to purchase 100 percent of the shares of stock of the Company which saves on the VAT, Capital Gains, Transfer Tax, Doc Stamps and Miscellaneous fees.
On the purchase of the BUSINESS rather than purchase of Real Estate, the buying out of Corporate Stocks to fully own the Corporation, Taxes will be only VAT. On the land titles, the stated owners are the respective corporations.
The two hotels are being sold together. Both are on the same Street, only 40 meters away from each other. The hands-on, day-to-day management are easily effected by the close proximity of the properties.
The 1st Hotel Inn has 35 Guest Rooms plus owners’ penthouse with a floor area of 1500 sq.m. while the 2nd Hotel Inn has 28 rooms, a basement in-house laundry and staff dormitory with open roof deck. Floor area is 1800 sq.m.
Profits will enable investor to recoup the capital investment in approximately 12 years based on room revenues. However, real estate will continue to appreciate, and therefore the property value is likely to increase over time making the purchase a very sound investment.
+63 917 854 5465
+63 998 984 3324
*Profit: Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.