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Investing in a small hotel

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  • 31-07-2006 9:35pm
    #1
    Jack_Flash
    Closed Accounts Posts: 39 ✭


    I am currently thinking of investing in a small hotel business and I've been taking advice from a number of people. However I'd gratefully appreciate further advice from any of the members here.

    Does anybody have any experience of the industry? Pros and cons?
    What kind of profit margin can I expect?
    What are current market prices?
    Etc.
    Etc.


Comments

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    #2
    vector
    Registered Users Posts: 1,756 ✭✭✭vector


    a hotel is made up of different businesses
    restaurant
    bar/night club
    accomodation
    leisure centre

    each one has a different return


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    #3
    jdivision
    Registered Users Posts: 4,260 ✭✭✭jdivision


    Hotels in essence are now only worth what the land they are built on is worth meaning the buildings themselves are essentially worthless. As always it's location, location, location - there's a huge amount of rubbish ones being built in places that can't support them. They're only being built for the capital allowances. Ask yourself if there was no tax incentives would you still invest in it. If you would then it's still probably worthwhile. If not, probably best to stay away.


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