Selling hospitality real estate during the crisis
INFO AND TIPS FOR RESTAURANTS
The food service industry has been hard hit by the effects of the CoVid-19 pandemic. All over Germany, catering properties are closing, landlords are filing bankruptcy or are about to close down. Many restaurateurs feel compelled to sell their catering property. If you pay attention to a few points, you can achieve high sales revenues for your catering property despite the economic downturn. In this article you will find out what is important when selling a catering property in uncertain times.
No guests: The Corona restrictions caused a massive drop in sales.
Everywhere in Germany - in Munich, Hamburg, Berlin, Düsseldorf, Cologne and many other cities, but also in rural regions - there are pubs, pubs, restaurants, cafes, discos, clubs and hotels for sale. The operators or owners of the catering property often sell out of a predicament. Those who want to sell their business for other, non-Corona-induced reasons are rare.
Enduring values do not lose their value
Every crisis has an end. When selling, the focus should therefore not be on the current reason for selling, but on the intrinsic value of the catering property.
Tip: Make yourself aware of this and emphasize primarily the advantages of the property, not your personal initial situation or the possibly unpleasant reason for the sale. Review the proven pre-crisis strengths and potential for years and decades to come. It is best to work with an experienced broker. He knows how to find a buyer with good credit ratings, even in difficult times, who recognizes the real value of a property and pays the appropriate price for it.
Institutional investors from home and abroad have to invest.
Investment pressure drives investors in concrete gold
Investors have to invest their money even in times of crisis. Often they have no choice but to invest in concrete gold. On the one hand because real estate is one of the safest asset classes, on the other hand because it offers solid returns.
The starting point: low or negative interest rates, volatile stock markets and poor returns on bond markets make life difficult for pension funds and other institutional investors. They are under pressure to invest and at the same time are obliged to adhere to the high requirements that dictate how they must handle the money entrusted to them. But private investors are also suffering from these circumstances, which will continue for some time.
The solution: Investors therefore often decide to buy gastronomy real estate because - like real estate in general - they have decisive advantages over other asset classes: A gastronomy property offers security, value retention, solid returns and, with the appropriate location and management, great potential for appreciation. For the seller of a catering property, these advantages and potentials are worth their weight in gold!
Good locations remain good locations
Despite the challenges, sellers can refer to the traditional quality criteria that are relevant when selling gastronomy real estate. A good location will always be a good location! Even an externally induced, short-term shock does nothing to change that.
Is your restaurant, hotel, inn or café in a particularly preferred area? Is it on a picturesque hill? Is it in the city center? Does it have any other location benefits?
Is your catering property an established restaurant, hotel or other catering establishment that made a name for itself long before the crisis hit?
Popular catering establishments have - in addition to the mere location - an additional location advantage due to their good history. Investors and potential buyers of this gastronomic property are also aware of this. After all, a restaurant, café or hotel that has once been established has the best chance of building up the same level of acceptance and attractiveness for guests as before, even after a short dry spell. - At least!
Thus, even in the crisis, the location remains the number 1 criterion when selling a catering property.
Alternative concepts for management
Corona has shown how vulnerable gastronomy is. The actors have learned their lesson from the crisis. Numerous restaurateurs made their business model more adaptable during the crisis by finding new ways to visit guests. Most restaurants have switched to self-collection or have offered a delivery service, some of them very environmentally friendly by bike, such as the Spielweg in Münstertal. Many have set up a hatch for self-collection or for serving small dishes to eat immediately, thus catering for hungry walk-in customers.
Particularly innovative restaurateurs like Heinz Winkler published their recipes on social media channels. Others put together cooking boxes with which guests could faithfully recreate the dishes they would otherwise order in the restaurant at home.
These measures may not bring the necessary sales directly during the crisis, but they did ensure that the restaurant was remembered and that the guests came back quickly after the easing measures.
Tip: Point out that the catering property also offers potential and measures to protect against risk in difficult phases. If necessary, report on alternative / management concepts, a second pillar or other empirical values or success factors that have proven themselves in times of crisis or that would be beneficial. An experienced broker draws the attention of investors to this valuable additional information.
Doubly attractive: option 'change of usage'
Is it possible to change the use of your catering property? They do not know? - Obtain this building law information, because it can increase the value of your property enormously!
In this way, you can already go two ways with the marketing and offer the property on the one hand as a catering property, but also, for example, as a property that is suitable for senior citizens' homes or for cross-generational living
The option to change the use makes your property twice as attractive to investors. The option of being able to use them alternatively makes the purchase decision much easier for them. In addition, interested parties recognize the Me