Tuesday, April 2, 2019

Charming Cottages Near Acadia National Park and a Strong Business. CHECK OUT THE NUMBERS!

Open Hearth Inn and Cottages sits at the 'gateway' to Acadia National Park, in Trenton, Maine, just steps from the popular  Trenton Bridge Lobster. 

Tom and Anne Rau purchased this as a pre-retirement plan. The couple are a perfect balance between warm hospitality and Mr. Handyman Fix-it-all. Their efforts, with not just Anne's hospitality, but her decorative touches, keeping the guest in mind and Tom's continuous efforts to update the cottages and rooms are quite evident in the growing success of their business. And let me not forget to mention the muffins. The homemade muffin offering there is a long standing tradition that not many cottage colony properties or motels offer. 17 units total, with 3 inn-style suites, 4 lodge rooms, 2 fully equipped apartments and 8 adorable cottages. Guests enjoy parking next to their units, picnic tables, chairs and rates that are easy on the wallet and allow guests to spend their money in the park, at dinner or activities.

The numbers.
Since Tom and Anne purchased in 2015 to 2018, they have increased the revenue considerably. Let's look at the stats.

STATS
11.32% increase from 2014 to 2015
20.22% increase from 2015 to 2016
4.38% increase from 2016 to 2017
6.72% increase from 2017 to 2018
33.92% increase since 2015 when they purchased
49.09% increase based on 2018 since 2014
41.99% increase based on 2019 over 2015
58.06% increase based on 2019 over 2014

And they've taken the ADR (average daily rate) up from $80/night to $110, but without dropping occupancy AT ALL which is a solid indicator that there's still room to increase rates. Tom and Anne  will leave that up to new owners, to give them continued opportunity. And based on the asking price, we are looking at a 10% cap on 2018 and likely 11.5% based on 2019. Strong business!





And check out the list of improvements:

2015
New septic system installed and resized for correct number of rooms. 
Deck supports (lodge building) revamped added and made safe
Corner on lodge building repaired (former owners)
Added 2 Orkin yearly contracts, for pest/bed bugs preventative
Decking replace on Lodge deck completely (in fall)
Side rail added to spa (required by state)
Roof repaired and replaced over suites (partial)
Repaired, simplified, made safe electrical for signs
Replaced lamp post and lights at entrances x 3
Roof replacement over office and owners quarters
Lodge A&B bathroom fans replaced
Added Little Hotelier after the end of the season
Replaced skylight in spa room

2016
New gravel to driveway, rocks added around well, driveway patched where they put in new well
Patio sliding door put in owners quarters
Apt B new flooring and subfloor
New BBQ grill for guest deck
New well pump, and tank and plumbed garage
Cottage 6,7, and 8 new roofs 
Wiring corrected over suites
18 sets of windows re-glazed and panes replaced
TVs replaced in cottages (larger) and suites
TVs hung in Lodge rooms and upgraded 32 inch as needed
Cottage 4,5 doors replaced
Sewer line repaired and replaced cottage 1 and 2
New ozone generator for spa
New wall heaters for 8 and 9
Oil tank replaced in main house
New flooring and ceiling in cottage 8, wiring corrected
Suite 3 new sink, fan, toilet and flooring
Furniture for set up of Suite 1 for exchange students
Through wall A/C replaced lodge D
Heat pump installed owners quarters
Heat pump installed Apt B
Ceilings repaired Suite 2, 3,4 and Suite 1
Lodge Roof replaced
New fence added behind owners quarters
New dryer and added to have 3 for business
New electric fireplace insert added to APT B
4 new bathtub/shower faucets (anti scald) Lodge A,B,C,D

2017
Massive professional landscaping, lawn reseeded and grub control
Remainder of Cottages re roofed 1,2,3,4,5, and 9
New glass shower doors suite 2
New shower natural stone tile suite two
Septic float switch replaced (behind lodge)
Both decks cleaned, and water sealed
Painted inside railing of main deck
Heavy duty pressure switch added on garage pump
Removed front awning
12 new mattress sets for replacements in rooms
Added Booking.com
Added 3 and replaced 1 picnic tables
New fridge, dishwasher, and microwave owners kitchen
Switched to Irving from Acadia fuel added annual boiler maintenance plans

2018
New septic pump behind lodge (now all new)
New mattress for 2 pullouts, cottage 7 and cottage 5
New light for office entrance and APT A
New light post front walk
New flooring Lodge D
Painted and repaired Suite 2 Bathroom, Bedroom walls
Painted and repaired Apt B Bathroom, Bedroom walls
Replaced Door to Apt B
Replaced both washers and added pedestals/5 year service
Repaired Apt B exterior walls (partially done)
Painted front of main building soffit
New screens for Apt B
Spectrum rewired entire property for digital tv service
Painted railing on inside Lodge building
Painted stairs on Lodge A/B side
Painted railing outside main deck
Removed 6 trees, replaced with cedars in front
Replaced Door to Apt A
Replaced last old dryer (both washer and 3 dryers all replaced)
Replaced dehumidifier in Basement of main house
Replaced remaining mattresses and box springs except for 2 kings all been replaced
Re-wired under APT B and put in boxes and made safe

THIS IS TURNKEY!


Check out the listing on my website for more details and contact me if you want to discuss further.

Monday, April 1, 2019

You know what the seller paid....OR DO YOU?






Understandably, many buyers while doing a bit of pre-offer due diligence may check public records to see what the seller paid. But what they see may not necessarily be the price the seller paid. WHAT? WHY?

It's because at the time of sale, the town only records what a party paid for the asset. The land and building, or the 'real estate'. But maybe the sale included FF&E (fixtures, furniture and equipment), or goodwill (business assets such as guest database, website, trade name, etc also known as 'intangibles') and maybe there was a non-competition agreement they paid for. The town records only the amount allocated to real estate because that's the asset you're paying town property taxes on.

So here's an example. Owner of ABC inn paid $1,000,000 when they purchased. The inn is now on the market for $1,350,000. Potential buyer looks online and sees the seller paid $855,000 when they purchased. But in fact, the seller paid $1,000,000, but the price was allocated among the assets as follows:

Building:       $  685,000
Land:            $  170,000
FF&E:           $    75,000
Goodwill:      $    50,000
Non-Comp:   $    20,000
Total:           $1,000,000

This 'allocation of assets', as it is referred to in the purchase and sale agreement, has to be agreed to by both parties. They have to sign a form for IRS purposes as this allocation affects income tax and capital gains tax. But that's an even bigger topic that I won't go into now.

If you want to read my analogy of allocation of assets to a hamburger, check it out. This snapshot is taken from a delicious article in Downeast about the best burgers in Maine. I cannot argue with many of them but I must say, the smoked burger at East Ender is amazing!


At any rate, this was just to show you that what might appear to be the sale price, might not be. Now you know. Not everything is as it appears! But this BURGER is probably everything that it appears to be and MORE!

Friday, March 29, 2019

Two More Maine Inn Sales! York Beach and Portland, Maine...

The Lighthouse Inn and Carriage House on Nubble Road sits just up from Nubble Light and steps to both Long Sands and Short Sands Beach. 31 units, many rooms with decks and views, pool hot tub, lovely patio and wonderful hospitality! I was pleased to represent the seller.





This is West End Inn, a 6 room boutique bed and breakfast in the heart of the coveted West End neighborhood of downtown Portland, Maine. The inn offers a bit of sophistication in the urban setting. I was pleased to represent both buyer and seller.







I WISH THEM ALL THE BEST OF LUCK!

Interested in talking about the market? Or looking to understand what you don't know to ask? Check out my top 12 blog post topics, I love educating! https://www.danamoos.com/financials1.html

Friday, March 22, 2019

Two Maine Inns Sold 3/15/19! Kennebunkport and Camden...

Last week both Edgewater Inn in Kennebunkport and Blue Harbor House in Camden both changed hands! 

Edgewater, pictured first, is located on Ocean Avenue in the heart of town, just up from beaches, shopping and the Bush compound. A lovely 12 room boutique inn that was fully renovated and rebranded in 2012. I was pleased to represent the sellers.






Blue Harbor House is located right in the hear of the picturesque coastal village of Camden, Maine. The inn offers 11 comfortable and beautifully decorated rooms, afternoon tea and baked goods. And fantastic hospitality I know the new owners will carry on. I was pleased to represent both buyers and sellers.






I WISH THEM ALL THE BEST OF LUCK!

Interested in talking about the market? Or looking to understand what you don't know to ask? Check out my top 12 blog post topics, I love educating! https://www.danamoos.com/financials1.html

Wednesday, January 9, 2019

2018 Maine Tourism Stats are in...Time to buy an inn in Maine!








Maine tourism has been on the rise now for the 6th straight year. Interest rates aren't going to go down any time soon and are still historically low. TIME TO BUY AN INN! Have you checked out my listings? A few are under contract so don't waste time! Contact me for details. 

Tuesday, October 23, 2018

"12 Things We Love About Living in Freeport", from the innkeepers at James Place Inn...

Tori and Robin Baron, the James Place Inn innkeepers and I were talking about the reasons they enjoy where they live during my last showing. And Freeport is so much more than the common perception being just about L.L. Bean and the outlet shopping.

So I asked them the top reasons why they love living in Freeport:

1. Sense of Community - great underlying community of year-round residents and ways to get involved in the community.

2. Ability to have a "date night" walking to a great restaurant and seeing a movie at the local six-screen Nordica movie theater.

3. Immediate access to three parks: Wolfe's Neck State Park, Bradbury Mountain State Park, Winslow Town Park.  All offer hiking, walking, spectacular view of the ocean and interior wooded views.

From visitmaine.net

4. Three mile drive to South Freeport harbor where a favorite lobster shack awaits as well as two marinas.


5.  Easy access to rentals of kayaks, bicycles, canoes, and standup paddleboarding for exploring the surrounding roads and waterways.  Also have boat excursions leaving directly from South Freeport with pickup just two blocks away, in front of LL Bean.

6.  Free summer concerts every Saturday from July-September in LL Bean Discovery Park, two blocks from inn.  Major names showcased, drawing large crowds.

7.  Winter sport offerings including snowshoeing and cross-country skiing within 10-20 minutes of Freeport, including Pineland Farms and their 140 miles of groomed trails.



8. Mix of retail stores available, not just outlets.  Thomas Moser fine woodworking and furniture, Jill McGowan, Chilton Furniture, Bella Boutique, Brown Goldsmith Jewelry, to name a few.

Thomas Moser

9. Just 20 minutes to Portland.

10. Walk to Amtrak station and grab the train to Boston and points in between.  There are multiple trains daily.

11. Breweries - two in town, another under construction.  Two distilleries as well.



12. Conveniently located to many day-tripping opportunities including Harpswell's Bailey Island, Maine Maritime Museum in Bath, Boothbay Harbor, and more.


It's important to love where you live!

Thursday, September 13, 2018

SOLD in Portland, Maine! Inn on Carleton...

Inn on Carleton in the West End neighborhood of downtown Portland transferred ownership on September 5, 2018. With Portland's ever changing and growing tourism and commerce, it's no wonder there's interest in inn ownership here. We wish Leo and Patty, the sellers, and Jim, the buyer, all the best of luck in their endeavors!






And if you're considering Portland, there's still one inn available in the same neighborhood.  Check out the listing on my website for more information: https://www.danamoos.com/wei.html







and the online offering:

West End Inn

Thanks for visiting!