The Patel's didn't own the building. They rented.
Yes, you're right. Hospitality is difficult because everyone is miserable & crazy these days.
My gut feeling told me it's a money pit even for 14K. Chatgpt agrees. We both did the math.
A lot of these buildings should of been demolished decades ago but since the housing market is used as an "investment" now we have all kinds of overpriced old run down buildings everywhere.
The Patel's run the largest motel chain in America, their story is well documented and can give you a guideline, although times have changed.
Maybe renting better than owning?
What's the land worth? Maybe that's more investable than what's on it? Tear it down and put up a McDonald's
I thought you were taking about the Patel's in my previous note. The ones who just came to Canada.
The province which that motel is in, is a dying province. A lot of Canadians also didn't have that many kids so there isn't that many young people and many have moved away from that province.
It's too expensive to tear down and rebuild a new hotel because of labor cost and material costs and because the building is so old the heating coats are high especially in such a cold province.
So yes. it's definitely a money pit. The situation on Canada is that smart money doesn't invest in Canada.
the Patel's
