still on

i read through you post and that of the buyer my advice is if you want more value above the 16 million estimated by the surveyor is to sell it as a going concern meaning you are selling the business not the building only ...hence a need to tell us how much the business generate yearly after tax this will give an investor an idea

Alikote:
i read through you post and that of the buyer my advice is if you want more value above the 16 million estimated by the surveyor is to sell it as a going concern meaning you are selling the business not the building only ...hence a need to tell us how much the business generate yearly after tax this will give an investor an idea

Thank you for your comment. It is being sold as a going concern ie building, furniture, goodwill etc. You can ascertain annual profit from the viability analysis I did.

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Do u HV lands for sale?

musco4me:
Do u HV lands for sale?

Yes I do Sir, what size and for what use and which location do you have in mind?

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musco4me:
Do u HV lands for sale?

Plots for sale in Asaba:

5000sq. metres behind Asaba Stadium with CofO N55m.

2000sq.metres behind Crunchies off Okpanam rd with CofO N25m.

2000sq. metres opp Legislative Qtrs with CofO N18m.

4000 sq. metres High Court area with Cof O N50m.

[quote author=zamirikpo post=48020821]Nice analysis but that place needs far more than 2m.. ...from my lay man's perspective it needs another 10m to remodel it, cos its an old model type structure, that bungalow has to go completely

The roof would be removed, pillars have to come in, in fact entire remodelling.

Then on the returns u forget that Asaba has a lot of hotels and there's no way u would have full rooms everyday for a year to earn 16 million a year.

It would be easier to build on a fresh plot of land.

If u know of any plot in a choice location(easily abrasive) pls post here. It would be cheaper to purchase and build a straight forward modern structure that would attract the market. [/quote

Plots for sale in Asaba:

5000sq. metres behind Asaba Stadium with CofO N55m.

2000sq. metres behind Crunchies off Okpanam rd with CofO N25m.

2000sq. metres opp Legislative Qtrs with CofO N18m.

4000sq. metres High Court area with with CofO N50m.

still on

Still on

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survemeka:
Of course, it will be renovated to suit the investor's taste. The required renovation is decorative in nature and not structural.

Let me do you a little analysis:
This property is for N25m.
You purchase it.
You spend N3m for renovation, thats 28.
You purchase a soundproof generator set for like N2m, thats N30m total cost.

These 20 rooms can fetch you 3k each a day thats 60k per day lets not talk about your profits from food and drinks.

You deduct expenses for diesel and wages for like 7 staff (gateman, receptionist, bar man, 2 kitchen people and 2 house keepers) @ like 15k per day.

This leaves you with a net profit of 45k everyday plus extra profit from your innovative ideas in food and drinks.

At 45k per day, every year, you make N16,425,000. In a year and eight months, ok lets say 2 years, you have recouped your N30m. Your returns from food and drinks is your extra glory.

I read the story of Yahoo today, one of the lessons I learnt is to be bold and take certain investment decisions at the right time.

Hope you find my analysis reasonable Sir.

Pls how much can it cost to rent such a hotel a year. I v similar property to rent from the owner. It's 14rooms. How much can I offer the owner as royalty in a year?

EngrKem:

Pls how much can it cost to rent such a hotel a year. I v similar property to rent from the owner. It's 14rooms. How much can I offer the owner as royalty in a year?

it depends on the market around where the hotel is located, if u know how the hospitality business works in ur area, that would guide u . some places like Asaba and owerri have soo many hotels and so the competition is very high. it would be wrong for anyone to advice u here,unless u state the location,off which he/she must be conversant with

zamirikpo:


it depends on the market around where the hotel is located, if u know how the hospitality business works in ur area, that would guide u . some places like Asaba and owerri have soo many hotels and so the competition is very high. it would be wrong for anyone to advice u here,unless u state the location,off which he/she must be conversant with

what is the value of the property divide by 20 years it give u an idea of the annual rent this is just on the building as a structure not a going concern(hotel)

EngrKem:

Pls how much can it cost to rent such a hotel a year. I v similar property to rent from the owner. It's 14rooms. How much can I offer the owner as royalty in a year?

Zamirikpo's answer suffices; Where is the hotel located? Does the offer include a power generating set? Do you have the required biz acumen to turn it into a money making machine. Answer these and you will get my advice.

Alikote:
what is the value of the property divide by 20 years it give u an idea of the annual rent this is just on the building as a structure not a going concern(hotel)

Please remember that you have to make adequate adjustments for inflation and depreciation.

Fosterdon:
Still on

Yes, lols.

On