How to Sell Your Resort for More Money
When you are preparing to sell your resort, it is important to take a look at all aspects of the property and business and make sure they are running smoothly. The following list contains our suggestions of areas to look at and make improvements where necessary.
Review of first impressions
Presence on the web
Brochures and stationery
Entrance to the resort
Entrance of each cabin
General appearances of grounds, docks and equipment
Check in / out ease
Time saving devices and equipment
Shop Everything: Insurances, credit card fees, online purchase of supplies, pre-planning for turnover days to maximize labor efficiency and trade out labor.
Our rule of thumb is do nothing without a minimum of a 20% yield – Meaning no purchase of rental equipment or improvements to any cabin or revenue source without a net yield of 20% (The cost of money, a risk factor and a margin.) A simple formula can save time and minimize risks.
There are some exceptions to this rule if it improves rates or occupancy.
External is getting guests to the resort; internal is getting them to spend more money once they are there. (Example: The use of discount coupons given upon arrival for equipment that is not rented prior to arrival).
In the resort business, we all have perishable inventory and need to manage it correctly. What we have to sell is an increment of time. If it doesn’t sell, it should be wholesaled for last minute purchasers, traded for something the operator needs, or given away for a future benefit.
Price cabins by demand, comforts, view, and privacy.
You MUST track your advertising. Use what works and cut the unnecessary expenses.
Dealing with lenders
Once you are an owner, first rule of thumb, never borrow money when you really need it. Set up your lines of credit when you are in the very best cash position. Make your payments just after cash flow peaks.
Don’t store cash in a checking account earning 0 while your debt is accruing interest.
Make sure your banker is working with you, your loan is as much of a problem to the banker as it is to you.
Show your banker you are organized, feed them good information and always negotiate for a better rate.
We help summarize the inventory of re-saleables (fuels and supplies).
We provide lists to help with details of business start up (transfer of licenses, insurance, tax ID, sales tax, other start up issues).
Buyer Qualification & Education
We qualify buyers and handle the showings (unless contracted differently). We give the buyer an education of the industry. We set the buyer up with the correct contacts within the industry that will help with their success.