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Hi Crest,
I am totally new to this game called "Motel investment".
My back ground is small time builder / developer
I am looking at the possibility of building a motel. Yes only if the numbers stack up.
I have been searching the internet for some "financial KPI" for small motels and unfortunately
I can't seem to find any. Any ideas where I could look.
Most of my ratios are from a developers point of view. such as
Financial Ratios Debt to Assets Debt to Equity Debt to Mkt Value of Assets
Operating Ratios Return on Assets Return on Equity
Income Statement Gross Margin EBITDA Margin Net Profit Margin
Though since reading thru the previous comments on this forum I have realised there is so much more involved.
Silly as it may sound I never really looked at the motel business side of things, until now
So for me, this is a whole brand new game.
I realise now that there are many different sub-business / business structures that may be considered.
1. As a developer
2. As a builder
3. As freeholder motel owner – Owner – operator
4. As freeholder motel owner – Owner – operator under management
5. As freeholder motel owner – who sell the leaseholdI have no doubt a person of your wisdom could name many more..
Please let me know if you know more
1. My question is would you know the key KPI that the motel industry uses to compare one motel to another.
2. If not where would I need to look.
3. Why are you against investing in towns near the mines…?
4 . I use to play football down at Como football club, have you visited the hotel lately .
5. Do you grow bonsais?
I very keep to learn what I can,, thanks for any the help and the sharing of your experiences to this forum
Cheers,
Cup of tea any one…!