Our south Texas client recently purchased adjacent hotels.
One hotel was a small, independent property. And on the adjacent property was a Best Western.
GRP Capital worked closely with the buyers, the sellers and the lender on two separate loans that closed on the same day.
Senior Associate Ryan Dumas shared his clients’ vision for the adjacent hotels. “My clients were poised to take ownership of these nearby properties. They will be able to continue to have excellent market penetration on the San Antonio to Houston corridor. They have solid business plans; having two adjacent hotels will make certain aspects of hotel ownership easier for them.”
The Benefits of Owning Adjacent Hotels:
• Reaching More Customers . When one business owner owns two adjacent properties, they have double the opportunities to attract guests. The two hotels can have different rate structures and different amenities (pet friendly or not?). In reservation aggregator websites and the websites for the two hotels, the business owner can differentiate and reach out to a greater variety of customers.
• Staffing Issues: Many hotels are still struggling with finding and retaining employees. In addition, hotels that have a high and low season are sometimes unable to offer stable employment. However, owners of adjacent hotels can utilize one group of staff members to do the same work in two places, which guarantees more work and therefore greater job stability. The owner can shift employee responsibilities between the two properties as needed.
• Same system; different address. Experienced business owners quickly establish efficient business practices. Setting up employee protocols, cleaning regimens, checkin and checkout procedures for two properties is not appreciably more difficult than setting these up for just one location.
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.
- adjacent hotels ,
- two hotels in one location ,