How do I check a motel’s busy and quiet seasons before buying?

Request month-by-month records across several cycles, not the best year alone. Look at occupancy, rates and revenue side by side. If one season carries most of the income, ask what could disrupt it, such as road work, a local employer, a festival or a change in nearby lodging.

Then study the quiet months. Ask what the seller did to fill rooms, which costs were cut and which ones stayed. Fixed costs such as utilities, loan payments and taxes continue regardless, so work out what the property needs to hold on through a slow stretch.

Ask who the guests are in each season. Contractors, tourists, travellers and long-stay guests each behave differently. A mix is usually steadier than a single source. Plan your own cash. Many buyers underestimate the working capital needed before the first busy season arrives. Ask whether you would take over during a quiet period, and speak to your accountant and lender about how to cover it. Ask the seller to explain any unusual month. Check the rooms and building in the quiet period as well. Maintenance and renovations are often put off until the slow months, so ask what is overdue and what the property will need soon. Those jobs also take cash, and should be planned for.

Key takeaways

• Review monthly figures across several full cycles.
• Identify what drives the busy season and what could disrupt it.
• Plan the cash needed to carry the quiet months.