Business Summary:
This Luxury Pet Hotel and Resort has two (2) locations (Westside and eastside). The total employees are for both locations. Eastside location total rent is $13,148 per/mo with a security deposit of $15,087. The Eastside premises is 14,000+/- s/f,. The initial term of the lease expires 3/31/2011. There are 2-3 year options to renew. The Pet Resort has all private rooms with televisions instead of cages which Seller states separates it from the competition. It is decorated like an upscale hotel. In 2005 with only the Eastside location established, the business had gross revenue of $1,210,506 with an adjusted net income of approx. $499,763. In 2006 sales increased to $1,405,341 with an approx. adjusted net income of $323,137.55. In 2007 the Westside location opened. Combined sales for both locations in 2007 were $1,283,826 with an adjusted income of approx. $66,668.22. Seller states that beginning in 2006 the business experienced mismanagement which attributed to the downturn in gross revenue and net income. In addition, Seller states that the focus in 2006 shifted to the build-out of the Westside location which experienced considerable opening delays pushing its opening until 2007. The company has removed the former manager and has now contracted for a new media marketing campaign which will be initiated in the second (2nd) quarter of 2008. Seller states that it believes with the implementation of the media campaigns it will be able to achieve or exceed the prior successes of the Pet Resort. Seller further states that the business is the premier Pet Hotel & Resort in Las Vegas. In addition to the purchase price, Buyer shall assume the responsibility to fulfill approx. $750K of prepaid services. Business is not Seller's primary one.
|
|
|
