Recently, we have been talking about a major change in our overall perception of viable working models in Innkeeping. In our less enlightened past, viability meant at least 8 rooms and occupancy pushing 50%. Then Airbnb burst upon the scene, turning what appear to be millions of ordinary folk into Innkeepers! While most people separate Airbnb hosts and hostesses from “real” Innkeepers, I believe they have filled in a previously missing element at the lower end of the Bed and Breakfast continuum. We can go to the lowest levels of activity and still find models that work. Three or four sales a month might pay the water bill, while ten might pay the mortgage. In any case, a vast number of people participate happily in this endeavor, indicating there is more to it than meets the eye.
The Chester House Inn in Chester, Vermont is one of our transfer clients that demonstrates clearly the Bed and Breakfast business as a continuum. Chester House Inn has one foot in the Bed and Breakfast world and one foot in the Airbnb world. With seven rooms, it could be financially viable. However, the owners have other objectives and operate the Inn comfortably with an occupancy rate of 18%. The Chester House Inn can be a viable choice for a family with one member working outside the Inn or in a home-based occupation. It is also a viable model for a couple looking for a lifestyle and having other income. The Chester House Inn can be purchased at a more than reasonable price of $599,000. In addition, current owners are willing to participate in financing.
The cash flow generated by the Chester House Inn will not warm the hearts of our traditional bankers tied to cash flow, but it is positioned to provide excellent personal returns for future Innkeepers who seek things other than cash flow. If you fall on the lifestyle group of future Innkeepers, the Chester House Inn may be a good choice for you.
Chester House Inn Profile:
Location: On the green in Chester, Vermont
Style: Bed and Breakfast Inn
Rooms: Seven, all with ensuite bathrooms
Owners: Six rooms, three bedrooms
Price: $599,000.00 (Owner financing available)