Buying Land for Building Restaurant/Hotel

What are the main points to keep in mind when buying land for building a Restaurant?

Appreciate your responses and thanks in advance

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When making a land purchase for a restaurant site, pay close attention to two long-term factors:

  1. The floating interest rate is the rate of interest you will pay. It is one or two

percentage points higher than the bank’s prime rate or the Consumer Price Index (CPI).

  1. The payout period is the number of years it will take to pay back the amount

borrowed. In most situations, this will be 10 to 15 years.

When it’s time to build on your land, you’ll use your projected income statement to tell you the upper limits you should spend on construction. This may sound cynical, but only you can decide if you’ll have enough guests coming in the door to support massive construction debts in addition to land costs. So, before you decide on the buy-land-and-build strategy, you would do well to meet with a restaurant or foodservice consultant and an architect. Together, after listening to your needs, they should be able to present a preliminary budget that covers all aspects of construction. In addition to design fees, the budget must include:

  • Electrical

  • Mechanical

  • Plumbing

  • Painting

  • Heating/air conditioning

  • Interior finish-out (for specific areas: kitchen, dining room, bar)

  • Special features (glass, doors, etc.)

Hope this helps

Before buying the land please take survey of the …like any corporate hub, educational institution, hub ,to develop the business

First floor should have mini Theater mini dining hall
With all Audio and video we’ll equipment

Later on second floor only Suite Room with good spacious

3/4/5 All room are (Centralized) Air conditioning system

Since I am in hotel industry as Liaison Officer, Operation Manager and saveral Designation