Buying a Hotel or Guesthouse

The purchase of a Hotel or Guesthouse in Blackpool and the Fylde Coast can be a very trying and time consuming exercise.

The majority of enquirers looking at Blackpool are purchasing for the first time. We have set out below a number of pointers that will require consideration to assist you in making your choice and finding your future.

Groundwork
If you are considering Blackpool for the first time we would advise an initial scouting mission to gain a picture of the different properties, area and prices, prior to making appointments to view.

Size
It is commonly considered that a first time venture to produce a full time income will require a minimum of ten letting bedrooms, especially if full funding is required to complete the purchase. A size below ten will necessitate an additional income or be on a semi-retirement basis or cash purchase.

Area
Blackpool covers 7 miles of the Fylde Coast including a number of differing properties and areas all popular within the marketplace for various reasons. e.g: semi-residential, busy, quiet, close to railway station, motorway etc.

Trade
Blackpool is very much an all year round resort although the majority of Hotel and Guesthouses only operate during the season by choice.

Accounts
Arrangement of finance is subject to sight of business accounts. Profit and Loss accounts will be made available for inspection on the majority of properties once a viewing has taken place.

Survey
Survey and Valuations are a necessity. If finance is required to purchase the property then lending institutions have their own panel of valuers and will instruct us as and when necessary.

Inventory
Prices quoted, unless otherwise stated, include the property, goodwill, furniture and equipment.

Finance
The majority of finance is provided by the High Street Banks to an average level of 50% and up to 60% as a maximum subject to survey, accounts, experience etc. Advice can be made available on request. Empty or non-trading properties will not generally qualify for finance.

Licence
If you are purchasing a hotel with a license then the license will need to be transferred. From February 2005 stricter measures will come into force which will require purchasers to be in possession of a B11 certificate (successful completion of a Licensing course) and also to be personally licensed within their home town. Courses for the National Licensees Certificate can be taken at most Colleges of Further Education and in particular at the Blackpool & Fylde College (Tel No: 01253 352352 - extension 4151). More details will be available from your local authority.