Inn Consultants and Brokers Since 1993

Rick Wolf and Peter Scherman (that’s Rick on the left and Peter on the right) are both experienced speakers who have presented on a range of innkeeping related topics at the state, regional, and national level. They gather and analyze research for the Innkeeping industry and welcome the opportunity to share it with others. Contact Us

The B&B Team
 

Posts Tagged ‘inn for sale’

Purchasing Your Inn-Price vs Affordability

October 20th, 2015 by Janet Wolf

Purchasing your inn Price vs affordability

You’re looking online at Inns for sale and your focus is only on the asking price. The price you THINK you can afford. Does this sound familiar? Price vs affordability…did you know that there is a very real possibility that the lower priced inns “may” cost you “more” than the higher priced ones? Sometimes the less expensive properties could be harder to finance because of limited business value.

Here is a simple scenario.

There are two inns. One is $500,000 and the other is $1,000,000. Both have 9 rooms, similar size and location. The $500,000 inn generates revenues of $75,000. Because of the low cash flow the banks will most likely want a high down payment percentage. Let’s say 50% which would make it $250,000 down.

The $1,000,000 inn generates revenues of $200,000. Banks like this! Solid business with good cash flow. A bank will most likely require a 20 to 25% down payment of $ 250,000. So the same $250,000 down buys you substantially more revenues and substantially more profits and all in all a better use of your monies with a greater return.

For the same amount of down payment buyers can acquire the $1,000,000 solid financially viable property with a solid cash flow from day one. The under performing $500,000 inn may take up to a year or more to increase the business with a much larger up front and ongoing investment of cash.

There are some details that a buyer must also look at in the under-performing properties.

  • Owner’s quarters. Is it a one room apartment in the basement?
  • Website. Is it a 10 year old site with bad photos?
  • Marketing. Is the inn virtually invisible?
  • Décor. Is it dated and tired?
  • Deferred maintenance. This will be discovered in a building inspection. But if you see a lot of visible “issues” it most likely means there may be more hidden ones!

All the five points are things that will have to be addressed by new owners and they all add up to a big price tag. Conclusion: that $500,000 price tag doesn’t seem quite so affordable does it? It may still be a good investment long term, but you may not be able to afford that investment now.

The B&B Team helps buyers discover what they can afford. We pride ourselves in the fact we work with our clients to help them make informed decisions. Their hard earned money that they are investing is best if it goes to work for them the day after closing. No one wants to be over-leveraged or face a year or more long expensive makeover with little cash flow coming in.

So next time you are cruising the internet for “inns for sale”, THINK about what you may have just learned here. The property price tag with the extra coma may just be your future affordable inn.

Thanks for Listening,

Janet & Rick Wolf

Massachusetts Berkshires ‘Life is Calling’

September 3rd, 2015 by Janet Wolf

massachusetts berkshires

Massachusetts Berkshires-Like the Views are Pretty Much Everywhere-Photo: Ogden Gigli

The Massachusetts Berkshires Tourism and Travel Planning website has a great tagline, “life is calling.” And life in the Massachusetts Berkshires is bursting with some exciting stuff! Lately there has been an explosion of a new and exciting local food scene. “A crossroads of culinary culture, the Berkshires attracts chefs and restaurateurs who are, in no uncertain terms, artists in their own right.” A food scene is a great draw in a destination location but cultural events and some of the most scenic vistas in the Northeast are the Berkshires’ mainstays and draws the world to its doorstep.

Massachusetts Berkshires Farm to Table Experience

Massachusetts Berkshires Farm to Table Experience

The peaceful beauty of the Massachusetts Berkshires has always been a draw, from the 19th century’s affluent ‘cottagers’ that flocked there from New York City to today’s tourists seeking a getaway. Today guests have the opportunity to stay in some of these ‘cottages’ as well as tour the larger preserved Berkshire estates open to the public.

The Federal House Inn in South Lee is a prime example of a Berkshire ‘cottage’ that offers guests a glimpse of what guests from an earlier time experienced. Elegance, yes, but also country comfort in a relaxed atmosphere. Earlier guests to the ‘cottages’ were seeking a respite from the social rigors of city society. I suppose you could say the same for today’s travelers. A getaway is a getaway no matter what century you live in!

Federal House Inn-Massachusetts Berkshires

Federal House Inn-Massachusetts Berkshires

The Federal House Inn was built in 1824 by the paper industry leader, Thomas O. Hurlbut. His home was his sanctuary, being a devoted family and business man. Today the property is still a sanctuary. The Federal House Inn has been fully restored and the gracious federal brick building appears today as stately as it did in in its inception.

Current innkeepers have kept the historical charm of the home which features gorgeous wood floors and large windows that invite guests to admire the surrounding scenery. The addition of the expanded and newly constructed owner’s quarters is a wonderful plus to the property.  A private living room, bright master bedroom and bath, walk in closets, a new 4-season sunroom/office, private garden and deck complete the package!  These quarters are spacious and comfortable…and… private and convenient too!

If ‘life is calling’ you to the world of Innkeeping, the Massachusetts Berkshires and the Federal House Inn for sale is a great place to start your journey. Read more about this gracious property and the wonderful opportunities it has to offer.

Thanks for Listening,

Janet Wolf

New York Adirondacks-The First Vacation Land

June 16th, 2015 by Janet Wolf

New York Adirondacks

Lake Luzerne Yesterday and Today

In 1869 author and preacher William H.H. Murray wrote a travel book on the New York Adirondacks entitled ‘Adventure in the Wilderness’ or ‘Camp-life in the Adirondacks’. Love how the old books had to have two titles, early SEO? The book created a huge stir that resulted in an influx of city dwellers to the Adirondacks. A new post-Civil War leisure travelling class had the time and the money to vacate the city for adventure. In fact ‘vacation’ came from the word vacate.

Mr. Murray described the New York Adirondacks in Victorian flowery language as a place…”where hundreds of forest-swathed lakes were gleaming like gems…amid the folds of emerald-colored velvet.” He also added some practical information. A new train line had opened the year before, only 36 hours’ travel from New York City and Boston. The rush began and continues today. An estimated 10 million tourists visit the Adirondacks every year.

New York Adirondacks

“forest-swathed lakes gleaming like gems amid the folds of emerald-colored velvet.”

Modes of transportation have changed throughout the 20th and 21st centuries but luckily the protected lakes and forests have prevailed. The Adirondack Park is a 6 million acre reserve that is larger than Yellowstone, Yosemite and Glacier national parks combined. Did you know this? I didn’t. Within the whole Adirondack Region the park is the largest publicly protected area in the U.S. It is also home to 105 towns and villages.

New York Adirondacks

Lamplight Inn Bed & Breakfast

The town of Lake Luzerne is among the towns that are located within the Adirondack Park. The Lamplight Inn in Lake Luzerne is a grand Victorian home built in 1890, during the real building, population and tourism boom in the Adirondacks. Innkeepers Gene and Linda Merlino purchased the grand home in 1984 and restored it to its’ former glory. The result…a most charming and comfortably elegant Bed and Breakfast Inn. Gene and Linda describe the Inn’s features. “No expense was spared for this home. A 12 foot beamed ceiling, chestnut wainscoting and fabulous keyhole staircases enhance the spacious Great Room, now used as the Guest Sitting Area”. Imagine staying among the elegant comforts of this restored Inn while being surrounded by ten acres of lawn and wooded mountain trails. Trails that meander towards an overlook of the Hudson River.  The Inn’s own micro Adirondack vacation land!

 

New York Adirondacks

Your own micro Adirondacks, chairs included!

Affiliate of The B&B Team, Eliot Dalton has listed The Lamplight Inn Bed & Breakfast for sale. Not only is the Inn a prime example of a well maintained and well run business, it is as you have seen in a prime destination location. One of the major drivers of the business. The trains may not bring the vacationers to the Adirondacks as much as the automobile does these days and that is a good thing. Because…within a day’s drive for 60 million people lie the wilderness and the 3,000 lakes of the region. And The Lamplight Inn.

Now are you ready to ‘vacate’ your current lifestyle for the adventures of innkeeping? The New York Adirondacks and their lakes and forests  ‘gleaming like gems’ are beaconing.

Thanks for Listening,

Janet Wolf

Taos New Mexico Destination for the Soul

August 6th, 2014 by Janet Wolf

Taos New Mexico

Taos New Mexico Sangre de Cristo Mountains Sunset        John B. Crane Photographer

Taos New Mexico is a unique destination location to say the least. Set on an undulating mesa at the base of Sangre de Christo Mountains. A landscape that offers enticements for every season. ” It is a place of piercing light and spectacular views, where the desert palette changes almost hourly as the sun moves across the sky.” This wonderful description comes from AARP Taos Vacation Guide.

There are destinations where artists are drawn throughout our vast country, from sea to shining sea and in between. Taos New Mexico has a rugged beauty and natural desert palette that have seduced artists, writers and photographers for over a century. Of course the Southwest Native American Indians have been painting and crafting there since ancient times.  Both influences have enriched the Taos community. The desert landscape and low-key life style also draws abundant tourists. Many visit time and again and stay. There are so many reasons why.

Taos New Mexico

Taos Pueblo is the only living Native American community

Writer and teacher Henry Shukman was a visitor from England who once stopped, felt the pull of the landscape and stayed. I believe his descriptive words say it all; “Taos Mountain has a mystique like no other, with an unrivaled place in American cultural history.”

And the history is abundant and can be viewed within the adobe walls of ancient native dwellings, the Spanish haciendas and ‘newer’ turn of the 20th Century adobe homes. The Adobe & Pines Inn is located on a preserved 1832 historic adobe hacienda. Once owned in the late 1930s by a patroness to the arts. She transformed the hacienda into one of Taos’ cultural salons. A gathering place for celebrity artists like Georgia O’Keefe and other notables like writer D.H. Lawrence. The gathering of guests since the Inn opened in 1991 continues and thrives.

 

Taos New Mexico Adobe & Pines Inn

Adobe & Pines Inn features historical art around every corner

Tao New Mexico artist

Taos New Mexico painter Walter Ufer ‘Where the desert meets the mountain’.

Historic bed and breakfasts like the Adobe & Pines Inn can offer so much to their guests. The Inn’s history includes an acequia, transformed on the property into a lovely stream that is part of the ancient Spanish irrigation system.  The Inn’s Grand Portal has a large fresco mural by Taos Pueblo artist Juan Mirabal circa 1950. Throughout the Inn’s walls are old wall tiles depicting saints and religious pilgrimages. A well preserved two portal adobe outhouse completes the historic picture (and experience)!

Taos New Mexico B&B

Adobe & Pines Inn Taos New Mexico

“Come Replenish Your Soul-Experience Taos-Experience Adobe History-Experience Your Soul”. This is how the current innkeepers describe what to expect at the Adobe & Pines Inn.  They are ready to welcome new owners and caretakers of this special Inn in a very special destination location. If you are ready to experience the mystique and life style of the southwest. Taos New Mexico may be calling you, where the desert meets the mountain.

Thanks for Listening,

Janet Wolf

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