Since the President’s State of the Union address, we’ve heard a great deal about making financing available to small business. The truth is, that excellent financing has been readily available all along in our domain. Community Banks (who do not lend to Bezerkistan) have money to lend, and interest rates, usually fixed for 5 years, […]
Category: Inn Financing
In these troubled times, it is natural to lower the risk factor in any important financial decision. For future Innkeepers who choose to seek out going concern Inns for purchase, it is a wise choice. A going concern has a history and that history will inform us of what that Inn’s capabilities are. That being […]
On July 31, 2009 Ed and Jen Dorta Duque completed a journey they began five years ago when they leased with an option to purchase the Three Mountain Inn in Jamaica, Vermont. The process was a true win-win situation. For the owners it was a relief from operations to pursue other interests and an important […]
The Crisis and Inns, Part I apparently hit a raw nerve. We had many thoughtful responses and many thank you emails for our news encouraging ongoing financing opportunities.
In truth, there are two financial worlds that function independently of each other, rarely crossing paths.
Sometimes, the macro news obscures counter trends among niches or segments of the larger picture. It appears we are experiencing that phenomenon in relation to the Bed and Breakfast and Inn business.
The larger hospitality industry is faced with well publicized declines in both Occupancy rate and Average Daily Room rates (ADR). Hotels and resort properties rely heavily on business meetings and business travel. These are soft business expenses which tend to get cut early on in an economic downturn. The natural fall off in activity is complicated by a record number of new rooms coming on line; the expansion planned and commenced a couple of years ago when the economy was perceived to be in excellent condition.
It is a very different story for B&B’s and Inns. Our core business is leisure travelers and for the most part, that business has remained strong…