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Can any one sell the hostel if he is a renter and not an owner ?

Buy / Sell a Hostel

Peter started this discussion 15 years 4 months ago

for example , some one used to run a hostel for a years and his hostel has got the popularity and a good name .
But he was a renter not the owner.
Can he sell his business to another renter ?

he has got a good name , reputation , he paved the road for a years for his success and decides to sell his business to another.
But what kind of hostels sale is that if he is not the owner but a renter of the building and might change the location by renting another building in another side of the city ?

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Peter

14 years

Where I live , to run Apartment-hostel does not require even a licence.
There certain rules which you should follow and that's all.
Because apartment its a private property and its have different legislation comparably with business buildings.
So what kind of value can have the apart-hostel or apartment - hostel , which does not have even a licence , because the activity '' apartment rent law '' does not reqiuire the licence ?
Probably , right is one of my friends who believes that apartment-hostel is not a hostel at all , and does not really have the value!

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KrazyBackoffice...

14 years

Where I live , to run Apartment-hostel does not require even a licence.

Can I ask where do you live, Peter?

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Peter

14 years

In ex-Soviet union countries for example the -'' apartment rent ''
does not require the licence !
So what kind of value the business has if it does not require the licence.

In Netherlands for exmple , no body will call apartment as a hostel
It can be B&B , pension , guest house may be...

I usede to travel a lot.
And I used to live in Amsterdam for a few years.
Its very touristic city.
I think a good Hostel there can cost even million dollars !
May be the trade mark can cost million dollars , right ?

Look at this one - for example

http://www.youtube.com/watch?v=-lErxecjxgU

In Amsterdam you can not get a licence for the hostel , because the market is overloaded.
The hostelks make more money than hotels.
The taxes are not as big as in the hotels.
I think , the hostels price even if its just a ''trade mark'' , can cost a million dollars !
''Hostels Licence'' , ( I mean your non-physical assets ... permits , trade mark , intellectual property. yes ? ) this ''subjective avaluation'' as you put it here , you can sell for million dollars !

That's why I think that the LOGO of ''rented apartment'' who does not need and does not have even a ''licence'' , can not have the value .
I mean apartmetn rent which does not have the ''licence'' - does not have the ''Intangible Assets'' ( beside the web site and may be a good relationship with house owner )
That is the reason I think , if I want to sell my business in 10-20 years , the business which in 10-20 years will be as successful as a ''cash machine'' !
What shall I sell , if activity by running ''the apartment-hostel'' does not reqire even a ''licence'' ?
Its just apartment filled with bunks ...
Or am I not right ?

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collegeofparty

14 years

What shall I sell , if activity by running ''the apartment-hostel'' does not reqire even a ''licence'' ?
Its just apartment filled with bunks ...
Or am I not right ?

Peter, in my opinion there is a big difference between "an apartment filled with bunks" and a "hostel or hostel-apartment". If you are providing great customer service, getting great reviews on the hostel booking sites, pleasing your guests and going the extra mile to make sure their stay is a great one plus continuously making profits then that is the "trademark" as you put it (it would be considered goodwill) is what is valuable to your business and what ill make it worth more.

On the other hand if what you provide is terrible or no customer service, getting bad reviews and basically providing rooms with beds in them well then you are not adding any value to your business and when you sell your business the only value it will have is just that "rooms with bunk-beds in them"

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Peter

14 years

Yes !
Thank you !
I understand.
I was just thinking for my self if the apartment-hostels have a future !

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