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Inn Consulting Partners

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Archive for the ‘Inns Sold’ Category

Why I spent New Years Eve in Ardmore, Oklahoma

Saturday, January 23rd, 2010 by admin

We have certainly been questioned about that; so, even if you did not ask, I will tell you why.  There is a lot of effort in bringing an Inn transfer to a successful close, but the actual day of transfer is definitely an anti-climax.  The battles have been fought, more or less amicably, and the day of closing is really for the attorneys to prove their worth.  We do not usually attend these ceremonial do’s, and when we do, our role is comic relief, in between running coffee and an occasional witnessing.

So why, you ask would Heide and I fly to Oklahoma City to non-participate in this closing of December 31, 2009?  Since you asked, (Did I hear you?)  I’ll tell you that although all closings are special, this one was especially so. On the one hand were the sellers, Bob and Linda Humphrey, who ten years ago fulfilled their dream and opened the Shiloh Morning Inn, custom-built to their specifications.  Successful immediately, they had the vision to add four freestanding cottages to their original five Inn rooms.

The Inn was successful, gaining many accolades and an invitation to be one of two Select Registry Inns in Oklahoma.  But a year or so ago, Bob and Linda realized they had accomplished their goals and many new developments created challenges they believed others might better handle.  They hired us, Inn Consulting Partners, to manage the sale of Shiloh Morning Inn.

We knew it might not be easy to find future Innkeepers who would want to move to Ardmore, Oklahoma, despite the exemplary condition and track record of the Inn.  We were fortunate that we found a young local couple with the desire, the skills, and the involvement in the community.  With the help of a creative banker at a local bank, we were able to put together a purchase package that fit everyone’s needs.

And now we can tell you why we were there.  At one A.M. on New Year’s Day, David Pfau was serving his wife Jessica a trial breakfast he would later serve to their guests.  She had just returned from the all night market where she bought garnishes for the plates and fresh flowers for the tables.

It is bringing together people like the Humphreys and the Pfaus that after 30 years still send chills of delight down our spines.  As long as we can share these special moments we will spend New Years’ Eve in strange lands.

Inn Partners, inns@innpartners.com www.innpartners.com

Shiloh Morning Inn, www.shilohmorning.com innkeepers@shilohmorning.com

Help for Future Innkeepers

Tuesday, December 1st, 2009 by Bill Oates

HELP FOR FUTURE INNKEEPERS

Several excellent educational opportunities are coming up in the first part of 2010 that should be of interest to serious future Innkeepers.  They are as follows:

  1. Mid Atlantic Innkeepers Trade Show & Conference January 10-13 at the Homestead in Hot Springs, VA:
  2. Inn Consulting Partners Seminar for Future Innkeepers; February 19-21, Arrowhead Inn, Durham, NC
  3. Innkeeping Conference and Trade Show, hosted by PAII, March 8-11, 2010, Austin Texas.

Each has its value. The Mid Atlantic Innkeepers Trade Show & Conference and PAII’s Innkeeping Conference and Trade Show are aimed at existing Innkeepers, but the information is applicable to future Innkeepers as well.  The trade shows are a separate and very valuable addition.  The Mid Atlantic show is much smaller, but the trade show is still excellent and the intimacy enables future Innkeepers more opportunity to network with real Innkeepers.

Both shows have a lead-in seminar for “Aspiring” (Read perspiring) Innkeepers.  While informative, they lack a real focus on providing the tools a future Innkeeper really needs.  We are prejudiced but we believe our three day seminar focused on providing the analytical tools and the personal perspective is much more valuable. (Psst.. it is also less expensive!).

We have observed a seemingly logical, but very misplaced belief that the internet, and in particular the listings of Inns for Sale, will somehow provide the insight needed to make a decision that will profoundly affect your future life.  A corollary to this is the belief that if I look at enough Inns for sale, “I will know it when I see it.”

Another danger area for future Innkeepers is the certainty that, in order for it to be mine, I have to build it from scratch, or at least renovate that Victorian monster in my home town.

Whether you are thinking about it or have made the commitment, you need to utilize the information tools that are available to you.  We suggest that one of the Innkeeper conferences, combined with our seminar will take you a long way toward making right decisions about whether to and how to.

By the way, if our February seminar is not convenient, we offer it throughout the year and all over the country.  Check it out at our website, www.innpartners.com.

EAGLES MERE INN CHANGES OWNERSHIP

Wednesday, September 16th, 2009 by Bill Oates

Inn Consulting Partners acted as a consultant/facilitator in the recent ownership change at Eagles Mere Inn in Eagles Mere, Pennsylvania.  Barbie Gale is now the sole owner of this very special Inn.

Eagles Mere Inn is a 19 room inn with fine dining for guests and the general public.  The town of Eagles Mere is an exquisite Victorian era summer resort built around a pristine lake.  Developed around the turn of the 20th century, time has had a very soft touch.

The Inn has a very busy summer/fall season but its proximity to Washington and Philadelphia make it a year ’round getaway destination.   Barbie, with the assistance of chef/innkeeper Toby Diltz, looks forward to greeting you at the Eagles Mere Inn.

Bill Oates and Heide Bredfeldt are always ready to help if you are contemplating an ownership change.  You can contact us at inns@innpartners.com or at 802.257.2360.

Creative Financing

Tuesday, September 8th, 2009 by Bill Oates

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 tax advantage.

For Ed and Jen it was an opportunity to run and eventually buy a larger Inn than an outright purchase would have allowed. An option payment gave them an exclusive right for five years to purchase the Inn.

As the five year date loomed, the economy was not cooperating. However, with compromise from both sides, a local bank and an SBA 504 loan, the deal was struck.

Three Mountain Inn is a 15 room village Inn. In addition to the rooms the Inn provides fine dining to guests and the general public. The Inn is a member of the prestigious Select Registry; Distinguished Inn of North America. AAA has bestowed a rare 4 diamond rating to the restaurant; one of only seven in Vermont.

Check out this fine Inn (and make a reservation) at www.threemountaininn.com. To learn more about lease options and/or Small Business Administration loan opportunities, contact Bill Oates at bill@innpartners.com or by phone at 802.257.2360 (toll free at 877.957.2360).

Make the unlikely happen…

Thursday, July 16th, 2009 by Bill Oates

Just two weeks ago Michael Converse and Patrick Wadsworth became the Innkeepers and operators of the Ravenwood Castle Inn in New Plymouth, Ohio.  This is an Inn in the Hocking Hills area of Ohio, a strong regional tourist destination for a wide area of mid Western population centers.  The main Inn building is an authentic 1991 Castle, with restaurant, common areas, Innkeeper quarters and 7 guest rooms.  The castle village has 8 year-round cottages and there are 7 seasonal accommodations appealing to families.

Patrick and Michael attended our “How to” seminar for future Innkeepers thinking their resources limited them to a five or six room Bed and Breakfast.
Indeed their resources were limited, and what they did have was illiquid in today’s market. However, what they had in abundance was a desire to have an Inn and the business skills and service acumen to make them successful.

What to do?

The seminar helped them to understand that a six room Inn rarely was a viable business.  They realized they needed a larger Inn.  But their resources appeared to remove them further from the reality of having an Inn.  Still, they made the trip to Brattleboro to talk to Heide and me, to make plans for some future purchase.  It just happened that Bill and Heide had a transfer client in Ohio, just about an hour from their base in Columbus.  We knew they had the ability and seemed to have the desire.

Fortunately, the owner was able to forgo any upfront payment and after a couple of meetings with Michael and Patrick, felt comfortable with them taking over the Inn.  The result?  Michael and Patrick entered into a five year lease with an option to purchase at a fixed price. The monthly payments will include a sum to be credited to the eventual purchase of the Inn.  Currently the cash flow from the business will supply the necessary cash to meet the monthly payments, but Michael will continue in his job, based in Columbus, as insurance.

We are proud of the role we played in arranging this transfer.  However, the real message for Future Innkeepers is that desire coupled with some creative thinking can make the unlikely happen.  If you have that flame in your gut, get moving. Perhaps we can also help you.