You want to buy a B&B or sell your B&B? Then it's good to know what the takeover market in the field of B&Bs looks like. B&Bs fall under the residential recreation rather than the hospitality sector. They are often small-scale locations, which include activities. In today's society, people often seek silence, nature and small-scale locations for a relaxing stay.
The demand for B&Bs is increasing and has tripled compared to 2018. This is also reflected in the number of acquisitions, registered to date with the Central Bureau of Statistics.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the hospitality, tourism & recreation sector, which includes a B&B, an indicative EBITDA multiple range of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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In figures, the number of B&Bs in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer B&Bs many growth and acquisition opportunities:
Rabobank research has shown that many people set up a B&B to generate extra income. If rooms are consistently rented out, then the income counts as structural, allowing for a higher loan, for example.
Timber is expensive, due to increasing demand. There has been an increase in the number of prefabricated projects, making wood the preferred choice in the industry, according to ABN Amro. According to CoBouw, the industry has not seen such a noticeable price increase in 20 years.
