cybernation started this topic @ 15:52 on 12/12/2006
what would be the right route to follow:
option 1
interested at venturing into the hospitality property market by purchasing a small hotel with a small conference facility.
don't have the cash...thinking of selling the idea to a couple of friends and form a consortium to raise capital.
option 2
establish a hotel management company and lease out a hotel to manage...also get a couple of friends and form a consortium to raise capital.
option 3
purchase an apartment block and convert it into a small hotel get a couple of friends and form a consortium to raise capital...since funds are scarce would prefer to cater for the budget traveller.
in all options, the restaurant/meals, housekeeping, handyman will be outsourced. Bookings and marketing of the hotel would be done in-house.
QUESTION
what is the best way to raise capital to fund my proposed venture and which option do you think would be easy to handle?
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Regards,
Muzi Mohale
TravelWires cc
www.accommodate.co.za
www.bid2load.com
www.travelwires.com
RE: brainstorming session...
fastfences | 12/12/2006 08:45 PM
Hi Muzi
I think first of all you should find out lenders' attitudes and criteria for lending on such project so will will know how much personal equity to contribute and how much to borrow.
If the 'friends' are to be part of the deal, they are most likely to be credit checked also, so they must be good heads.
cheers, Nigel
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RE: RE: brainstorming session...
waparesult | 13/12/2006 07:04 AM
I think all are risky, borrowing money from "friends" to create a consortium are always a risky venture, everyone has different ideas on how to take a business forward.
I would propose building a business plan and seeking professional funding, i.e.e venture or bank.
Good luck though sounds like a good idea....
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Martin Hunt
RE: brainstorming session...
rocket | 13/12/2006 10:38 PM
Originally posted by: cybernation
option 3
purchase an apartment block and convert it into a small hotel get a couple of friends and form a consortium to raise capital...since funds are scarce would prefer to cater for the budget traveller.
In case it's of any interest, take a look at www.easyhotel.com . They are expanding through franchising, and by all accounts the hotels so far have been phenomenally successful.
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If everything in life is a success, you aren't taking enough risks.
RE: brainstorming session...
cybernation | 14/12/2006 07:02 AM
Hi Rocket,
I've been in contact with easyhotel before they launched in london and was told they will only be expanding in Europe and thus I'm out of the equation since I'm South African based.
------------------------
Regards,
Muzi Mohale
TravelWires cc
www.accommodate.co.za
www.bid2load.com
www.travelwires.com
