The Innkeeper's Resource

Why So Many Inns For Sale?

At our recent Innkeeper's Resource Seminar For Aspiring Innkeepers at the Thomas Shepherd Inn we had what would seem to be a simple question with a not so simple answer. Our attendee said, "When I'm on the Internet looking for inns for sale, it seems I see a list that gets longer every day, and there are lots of properties that have been there a long time. What's going on?"

What's going on? Quite a lot. First, it's not unusual for a quality inn in a good location that is well priced to take a long time to sell. These are very unique properties that take a special person to be a fit. But, aside from that, there are many B&B's for sale that are not businesses at all, but rather a beautiful home where a B&B is operated and which, therefore, can't support a mortgage. In a world where many people are seeking an alternative lifestyle but need to make a living, most of these properties will be knocked out right away. Many should really be offered (and purchased) as residential real estate.

The second and, in our opinion, most important factor is that the vast majority of inns for sale are grossly overpriced. It seems that the rationale for pricing is nebulous or misinformed at best, fanciful or misleading at worst. There are methods for pricing B&B's and inns, but many people don't know what they are or misuse them. Some people get caught in the trap of estimating a price or value based on what other people are asking. If they aren't selling, maybe there's a better place to look! Sale prices are what count, and that information is harder to find.

Lastly, the current credit crisis in the markets is making it more difficult for people to get loans to buy anything, much less a B&B that most lenders don't understand to begin with. However, good borrowers buying quality properties that make financial sense and that, importantly, are well and reasonably priced, will always be able to get a loan. We work with some of the best lenders in the business and have seen them "make it happen." So, don't despair, whether you're buying or selling, just get good advice.

Peter

Time Poverty

Interesting article in the July 24th edition of the Portland Press Herald about "Time poverty costing Maine tourist dollars". 

According to Greg Dugal of the Maine Innkeepers Association, Maine is experiencing shorter average stays than a decade ago. This trend is mirroring a national trend and the root of this is based upon peoples lack of free time.  Our lives are seemingly more complicated than a generation ago and we are pressed for the precious free time we do have.  More activities for the kids, more pressures on the job front, more things going on after work, on weekends...with the end result that we're becoming time "poor"!

OK, I know that much of that is true for me and from what we hear from our Innkeeper friends, they agree that this phenomenon is having an influence on the season.  But what to do?

Bob Smith, owner of the nearly 80 year-old Sebasco Harbor Resort in Phippsburg has just opened a new spa and is in the midst of a massive overhaul that includes, new suites, and many other upgrades.  Bob says that they are now trying to offer a wider range of guest activities and amenities designed to entice longer stays and that the early results are...positive. They are targeting the family decision maker, the lady of the house, because, according to Bob, she makes the family's vacation plans about two-thirds of the time.  Interesting statistic for future targeted marketing.

At the end of the day, it's all about packaging and marketing.  We hear this from other Innkeepers too... and they are ones that seem to be positively bucking this new trend and are enjoying a good season.  Kudos to them!

Rick

An Eloquent Innkeeper and The Noblest Occupation

Innkeepers are a great group of people and when you get meet one who clearly "Gets It", it opens a dialog that is as rewarding as it is enjoyable.  Dick Matthews, who along with his wife Pam, are the Innkeepers for The Hummingbird Inn just wrote an article for PAII's monthly Innkeeping Newsletter that in a word, is Fantastic!

Without trying to paraphrase or embellish upon an already wonderful view of Innkeeping, I offer a tip of the hat to Dick for his insightful views and honesty.  If you haven't read the article yet, you can find it on the PAII site.

I called Dick today to introduce myself and congratulate him on his journalistic prowess, only to find he is a journalist who has found his way into the wonderful world of hospitality.  The B&B Team's upcoming Aspiring Innkeeper's Seminar begins next week and I can't think of a better piece to share with our group of Aspirer's than this article.

You can tell by the image that I'm a gray-beard and I find out that Dick is one too...and that we both have spent some time "trodding the boards" as theatre-folk!  Hey Dick, we've got a whole new set of stories to share!

Again, Dick, thanks for a great article about The Noblest Occupation.

Rick