There is a definite shortage of licensed businesses available for sale just now, making this a very good time to put a hotel or pub on the market.
A number of recent sales, including those of the Stakis hotels in Falkirk, Paisley, and at Glasgow Airport, demonstrate that there is a window of opportunity to sell at a premium price, according to David Reid of agents Christie & Co.
''There are many business owners who have decided to wait for 12 months or so before marketing their business. However, our advice is that it may be prudent to go to the market now.''
He says that in 12 months' time there may be a much larger supply of good quality businesses available for sale. ''And there is no guarantee that the favourable trading conditions being experienced at present will continue to be enjoyed.''
He lists the advantages of the current market as: relatively low interest rates; strong support for buyers from the banks; good trading performances from businesses being sold; an influx of buyers from outside the west of Scotland
''These four ingredients are helping to create a good deal of demand, the result of which has helped to drive prices forward in the past six to 12 months.''
Late spring and early summer is traditionally a busy time in the licensed property market. As the weather improves and the holiday season gets under way, business picks up in the licensed trade - and would-be buyers are encouraged by the prospects of a strong trading period in the summer months.
''Many business owners seem to be under the misconception that the market is saturated with hotels, pubs and restaurants. This is certainly not the case.
''Demand and supply will always dictate price levels, and with the increasing demand for quality businesses and a shortage of licensed business on the market, this is helping to drive prices up.''
Some sellers worry that putting their business on the market could have an adverse impact on trade and staff morale.
''In our experience this is not the case. If handled in a professional manner by a reputable specialist agent, then a sale can be achieved in a very satisfactory fashion,'' says Reid.
His firm is currently marketing the biggest hotel in Largs, the 58-bedroom Springfield Hotel on the north bay. The business is being sold on behalf of James and Grace Miller, who have owned it for 20 years and want to spend more time with their family and to pursue other business interests. Christie & Co wants offers over #750,000.
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