So i have been thinking about maybe retireing from my apartment hotel after 2 hard years of Covid and still not being close to fine as it was 2019.
I opened the Hotel in November of 2018, it has 7 Apartments all of which are included with a kitchen,jacuzzi 2 big spacious rooms and some incedibly views over the city of Cusco and the mountains. I am not the land lord and i made a 5 Year Rent deal (with option for 1 more) with the landlord which is up for discussion and he has pointed out that it is possible to extend many more years. Also he is looking to sell the property for 550.000 USD which we agreed on, possibliy with some flexibility on the price due to new things happening in the world.
Monthly rent is 4500 USD and after next year 5000 USD ,Cusco is a very competetive city and therefor really high prices. But tons of tourists and tons of hotels/hostels.
During 2019 we had a monthly revenue of around 10-18k USD therefor making good money in the high seasons april-september and during low seasons which is rest of the year its around breakeven. Employee costs and gas,electricty is really cheap in Peru, but the hotel night prices are high, so the ratio is really really good with lots of oportunity.
I have built up a spoke like Apartment hotel which had zero love to a new a fresh Apartment Hotel with a good name and reputation. I renovated all the rooms to fit the name of different cities and also built an restaurant on the site which is brining in some monthly revenue and guests. Before Covid i rented it out for 2000 USD and during covid for 700 USD, and its about time to negotiate a new price in the next few months.
My first year in action of 2019 we made a revenue of around 100.000 USD which was a breakeven year and a learning year, after that covid hit us so we have been losing money untill recently 2022 when things have picked up again , but still not as before. And also learned new tricks to saving money and where to spend and not and so forth. We also upgraded the hot water system and electricity and all rooms have been redocorated. Also a new reception, laundry room, new lamp fictures all over the place and the fachad.
New Website have been made 2019 which got good SEO and all analytics and softwares (pms,channel manager,booking engine) working, Google ads, Facebook pixel.
I might be thinking of moving back to Sweden so that is why im thinking about maybe selling the buisness and why im making first thread here.
I have probably put in about 150k into the buisness and brand so that is what i am looking for the sale price of the buisness and all. Also there is a deposit of 6 monthly rent so a total of price 34k USD that would be needed to arrange with the Land lord which will be paid back upon ending the renting agreement.
I tryed to put in as much info about the place as possible, if you are intressted in more info and price and other legal matters you can write to me here or on whatsapp +51 994061195, or email [email protected]
If you know anyone intressted and it would be very helpfull if you could pass on the info aswell , or maybe any websites that i am missing to also advertise on?
The hotels name is Cities of the world hotel cusco, which you can google and see for yourself more info about us.
Kind Regards Tim