|
Linen Leasing To Major Las Vegas Hotels For Sale
Location Nevada,United States
Asking Price Range $1.0M - $2.5M
Gross Revenues $622785
Net Profit / Cash Flow $622785
Cash Flow Type Sellers Discretionary Cash
Seller Finance Not Disclosed
Year Established 2011
Number of Employees 6 - 9
Relocatable Not Disclosed
Number of Employees 6 - 9
Real Estate Leased
Reason for Sale To provide service.
Description This company ("leasing co.") owns linen, which it rents to a major commercial linen service ("laundry co.") in Las Vegas under contract. Laundry co. has 5-year service contracts with major hotels in Las Vegas, which require the laundry co. to supply the inventory to the hotel for the life of the contract. When the laundry co. receives payment from the hotel, it pays leasing co. Initially, a 2-month impound account to ensure payment from the laundry co. On the investment of $1,400,000, the leasing co. receives monthly guaranteed payments of $33,305.90. Since the leasing co. owns the inventory, it is able to depreciate the cost over the life of the contract (60 months), thus reducing its taxable income. There are no operating expenses. At the end of the contract, the leasing co. donates the used inventory to a charity and writes off the salvage value. Each piece of inventory has a radio frequency identification ("RFID") tag sewn into it. This enables the inventory to be tracked continuously within the commercial laundry plant and the hotel. The hotel is required to pay for any damaged or lost inventory. New contracts come up periodically. This contract starts immediately. Another 5-year contract for $3 million starts in November 2011; the monthly payments for that contract are $79,370. Serious buyers with cash, please contact Len Krick at 702.856.4701.
Click Here To Contact Seller
|
|
