Frankie Knowledge

REASON NO.1
Lack of Room Demand is Killing your Hotel Business

As a direct result of this on-going COVID-19 Pandemic, international travels are restricted. This means to say that international tourist arrivals have dropped very drastically. In addition, inter-state travels are also adversely affected. Business and Corporate Professionals would only plan to go on business trips and stay in hotels if they are absolutely necessary. Of course, local/domestic leisure travellers and families are extremely cautious about moving around during this COVID-19 crisis. In conclusion, the demand for hotel rooms has decreased very significantly. 

REASON NO. 2  
Low Room Pricing is killing your Hotel Business

During this challenging times, we are very certain that price wars are taking place in your geographical location of competition. Aggressive promotions and heavy price discounting are definitely eating into your profit margins. Yes! In the short run, your main concern is to generate enough cash flow to support the hotel business operations. Your key focus is not about profits. However, with low room pricing, the big question is – How long can your business operations last? Next 3 months, next 6 months?? Very soon your hotel will not be able to sustain the business…

REASON NO.3
High Operating Cost is Killing your Hotel Business

To ensure that your hotel business is sustainable, your monthly revenue or collection must consistently exceed the cost of operation. However, the truth is – to the majority of the budget, business and boutique hotels, this is Mission Impossible, especially if you have to pay fixed rental every month or you need to service your loan repayments. Of course, in addition you still have to worry about your hotel’s utility bills, laundry cost, cleaning and disinfecting cost, staff cost, OTA commissions and a long list of bills that you need to pay

REASON NO.4
Staffing is Killing your Hotel Business

Many budget, business and boutique hotels have major staffing issues. High Staff turnover may be one of your biggest headaches. On one hand, the staff do not stay for too long because the pay is not attractive enough and they have to work long hours. On the other hand, your hotel cannot afford to pay higher salary because your business is not exactly doing well. This scenario is very common. In addition, many of your front office and housekeeping staff may not have the adequate level of knowledge/skills to effectively discharge their key result areas and to comply with the required standard operating procedures. The bottom line is – staffing can be very stressful for you

REASON NO.5
The Future is Killing your Hotel Business

This COVID-19 virus is not going to go away anytime in the near future. In fact, the virus will be around for the next – at least 12 to 18 months. In other words, your hotel business is not going to recover so fast. Therefore, the future of your hotel business is definitely very bleak. It is not encouraging at all

CONCLUSION

If you do not have concrete solutions to address the 5 Reasons that we have shared, there is no point in continuing your hotel business. You might as well Sell your Hotel Business. By delaying your decision, you will end up losing more money. That’s it. Straight to the point

What We Can Do For You?

Once you have made up your mind to sell your hotel business, Talk to us. For your information, we are Not Property Agents. We are Hotel Business Enhancement Consultants, with 38 years of experience offering Hotel Business Consulting, Hotel Management and Hotel Operation Service/Solutions especially to Budget, Business and Boutique Hotels. Of course, we do collaborate with Property Agents.

Step 1 We will carry out a Hotel Business Audit to determine the Real Potential and Market Value of your business in your geographical location of competition over the next 3 to 5 years
Step 2 We will assist you to effectively package your hotel business
Step 3 We will source for buyers for you. Most important, we will assist you to secure a fair and reasonable price for your budget, business and boutique hotel during this highly challenging times

At present, we are working with numerous Hotel Business Owners. An example of a Hotel Business Sale that we are currently facilitating is listed below –

BUY A HOTEL BUSINESS

INTRODUCTION
Based on our analysis of the current Hotel Business Landscape, many Budget, Business and Boutique Hotels in the country have already suspended their operations and eventually they will close down. The balance of the hotels that are continuing their business operations are struggling to achieve the desired level of room occupancy just to break even. In short, the Hotel Business Environment is facing a Crisis. However, in this crisis, there are Real Business Opportunities

REASON NO. 1  
In this highly challenging times, your bargaining power as a buyer is much higher than the bargaining power of the seller. Therefore, strategically, you are in a much stronger position to negotiate a more favourable business deal especially with regards to the Final Purchase Price. The Final Purchase Price and the Terms of Payment are very critical because they will have a direct impact on your Return on Investment

REASON NO.2
In furtherance, after acquiring the hotel business, you would still have 3 to 6 months Time Gap to strategically reorganize and reposition your business. In actual fact, it would be just in time to fully capitalize on the progressive market recovery. We anticipate that the market will start to show some real signs of business recovery towards the end of quarter four 2020

REASON NO.3
This crisis has also changed the logic of differentiation. Previously, most hotels differentiate themselves by placing key focus on offering excellent service and quality room. Now, this COVID-19 pandemic has given you a real opportunity to differentiate and position your newly acquired hotel business as – ” A Responsible Hotel that offers the Safest Accommodation in your geographical location of competition” [in addition to excellent service and room quality] 

What We Can Do For You?

Once you have made up your mind to buy a hotel business, Talk to us. For your information, we are Not Property Agents. We are Hotel Business Enhancement Consultants with 38 years of experience offering Hotel Business Consulting, Hotel Management and Hotel Operation Service / Solutions especially to Budget, Business and Boutique Hotels. Of course, we do collaborate with Property Agents.

Step 1 We will carry out an Investment Needs Analysis to determine your Budget, Payment Schedule, Expected Return of Investment, Preferred Hotel Business Location, Preferred Size of Business Operations and related concerns
Step 2 Based on the Investment Parameters, we will source for a Hotel Business that Best meets your Specific Needs
Step 3 Once the preliminary needs are met and agreed upon, we will proceed to carry out the Hotel Business Audit to determine the Real Potential and Market Value of the Selected Hotel Business
Step 4 We will represent you to undertake all negotiations with the Seller and related parties/authorities until the Hotel Business Deal is completely closed
Step 5 If the needs arise, we would be pleased to offer to you our Total Hotel Business Management Service/Solutions. The ultimate focus is to assist your newly acquired Hotel Business to attract and sustain Room Bookings by adopting a highly focused Marketing System

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Thanks for taking time off to visit our website. We certainly look forward to be of service to you. Hear from you soon and most important, Stay Safe
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