They are up for sale because there are too many in one area and few people use them. The days are long gone when people went to Blackpool for their holidays. It is cheaper to go abroad. There is little difference between the two, hotels serve evening meals, guest houses usually just serve breakfast.

Taxes are the same for any business. You have a 10K a year allowance, you calculate the outgoings and anything over that is profit which you pay tax on.

UK

I'd say many hotel's being up for sale is a bad sign that they're not doing very well. I'd do something else.

The financial aspects of running a hotel are like any other business. You get an income from room fees and your expenditure includes staff wages, laundry, renewals (sheets and towels don't last long - even if your customers don't steal them) and maintaining the building. You also have overheads like electricity, gas, insurance, telephones and advertising. There's also council tax which depends on the size of the building. If your income exceeds your expenditure and overheads, you make a profit which is subject to tax - that's income tax if you run the business in person or corporation tax if you run it as a company.

The difference between a hotel and a guest house is that a hotel provides lounge facilities so guests can spend the day there if they wish. The other thing to remember is that if you provide meals (even if it's only breakfast) your kitchen will be inspected from time to time to check that it is up to food hygiene standards - so you need to know what they are.

If there are a lot of hotels up for sale, it generally means that there isn't enough business for the smaller players to make a profit. That's probably not a good place for someone new to the industry to start. Remember you've got to compete with the budget chains like Travelodge. Somehow, you've got to find a way to get the punters through your door.

Before you do anything, put together a business plan. There are a number of internet sites that can help you do it.

I've noticed there are many hotel's up for sale in Blackpool. If I were to buy a hotel in Blackpool would it be relatively easy(or even possible) to make a profit? I mean I'm not talking about a big profit, just a small one. There is clearly a lot of competition in Blackpool.

Also what is the difference between a hotel and a guesthouse(B&B) in the eyes of the law?

Furthermore, what are the taxes that a person running a hotel can expect? Does having more rooms, mean you have to pay more tax? What are the tax charges for hotels?