In a previous writing four weeks ago, I described my nascent love affair with smaller Inns. I surprised myself to discover that Inn Partners currently is consulting with nine Inns priced below $1,000,000.00. Some may pass muster as viable business entities and some may not. But all of them fit the definition of viable when the definition of viable is not necessarily financial. Below, we will look at four smaller Inns to demonstrate different definitions of “viable.”
The Bronze Antler B&B is an elegant four bedroom Bed and Breakfast in the art-rich 1,100 person community of Joseph, Oregon. This B&B has an open concept 700 square foot owner’s quarters. There is no need to struggle at the Bronze Antler. The occupancy rate runs about 50% with an average daily rate of $150. This is income of about $125,000.00. A couple running this business would have minimal staff needs and time for the many pleasures of Northeastern Oregon. The ideal candidates of this elegant Inn would be a vigorous, recently retired couple, with regular retirement income. Without fuss, they would have time and resources for regular visits to the grandchildren.
This 13 room full service Inn provides much more asset value and business strength than almost any Inn under $1,000,00.00. At $995,000.00, the package includes a separate owner’s home and an Inn dining room with magnificent views of Mt. Washington and the Presidential Range. In addition, there is a separate house 50 yards from the Inn. This is in a rural setting featuring outdoor activities. The ideal ownership of Darby Field should be a young couple/family with a long-term commitment to keeping the Inn on the edge. An added feature would be an owner with restaurant experience.
This 10 room Inn has much going for it. With Sugarbush and Mad River Glen ski areas, winter is a strong season. Summer focuses on outdoor events, and foliage takes care of itself. Despite this, current owners have not developed the business to anything like its prospects. New owners here should be rewarded with outstanding growth opportunities. Several circumstances make this a wise purchase. In the first place, favorable financing is available from the current owner. The location suggests the ability to double business activity quickly. Current owners have two horses on the 16 acres. New Innkeepers could be horse people, which would add appeal to the Inn. Young Innkeepers ready to make a long-term commitment would thrive at this excellent opportunity.
Located on the eastern shore of Seneca Lake, the Magnolia Place is one of those B&Bs that invites you to relax, stretch out, and enjoy the world around you without being too involved in it. Yet the location on Seneca Lake puts you in touch with all sorts of activities including what most consider the best of the 60 odd wineries on the eastern shore of Seneca Lake. Watkins Glen Race Track and Cornell University and Ithaca College are nearby. Magnolia Place is ideally suited for a couple operation doing all of the critical jobs of the Inn with minimal part-time help. Gross sales of over $200,000.00 will amply reward a couple with cash flow around $100,000.00.
Chosen carefully, Bed and Breakfasts can satisfy a variety of needs. Almost everyone who purchases an Inn does so with a variety of desires. There is a joke about Innkeepers that says, “The best way to make a small fortune in the Inn business is to start with a large one.” Happy hunting!