Bed and Breakfast Inns and Small Hotels & Motels
TABLE OF CONTENTS
Important Notification -
Disclaimer
Why consider owning your own Bed &
Breakfast Inn? 
"So, you
want to own a Bed & Breakfast Inn"
It's the Law - Regulations regarding health and safety for B & B's
What
are you looking for in a Bed & Breakfast
Sample Analysis Sheet 
APOD (Annual Property
Operating Data Sheet)
Current Properties On
Market (some w/pictures) 
Selling
your Bed & Breakfast, things you need to know
Marketing
of A Bed & Breakfast (Services Offered) 
Real Estate Terms 
Important Notification - Disclaimer
The information contained in the following pages has been prepared to
provided summary information for prospective Purchasers and Sellers to establish a
preliminary level of interest in the business of Bed & Breakfast/Inns and Small
Hotel/Motels. The information contained herein is a small amount of information that has
been provided in some cases by third party individuals, it does not contain all the
material and information, including risk factors, associated with an investment of this
type and it is not a substitute for a thorough due diligence investigation.
Why Consider owning your own Bed and
Breakfast?
In recent years the Bed and Breakfast Inns have seen an
increase in numbers and clientele. A nationwide study reveals that 71% of today's
travelers prefer to stay in a "Bed and Breakfast Inn" over large Hotels/ Motels.
Due to the uncertainty of jobs today in the large
corporate community, people who are reaching their 40's and 50's are seeking an interim
career. They are looking into the Bed and Breakfast Inn industry.
This interest in Bed and Breakfasts Inns has sparked a
need for a qualified professional to assist those persons looking for that type of
property, as well as protecting the investment of the current owner of the property. This
is where I come in: I specialize in marketing of Bed and Breakfasts in the Great Pacific
Northwest. As a member of the National Referral Network of Bed and Breakfast Inn Brokers,
I can offer insight and guidance in the whole process.
"So,
you want to own a Bed & Breakfast Inn
Are you ready to become a stage manager ,
choreographer, director and producer? As a Bed & Breakfast owner you might well
consider yourself being one or all of these at times.
As an Innkeeper, you get to create your own stage
and stage your own show. You orchestrate a one-of-a-kind production, utilizing material of
your choice or craft. No matter how many books you have read or classes you have attended,
your Bed & Breakfast will be unique in all the world. No other establishment will bear
much resemblance to yours, because, after you dress up the rooms, assemble the recipes,
clean the house and buy the face towels, the rest of the cast arrives and the dynamics
commence.
The amazing and wonderful guests whom you have
attracted interact with you; they interact with your home and they interact with one
another. Within a few hours conversations with people you have never met, you feel like
old time friends. This type of relationship could never have occurred had they been
seatmates on a four hour flight or a dinner engagement.
Another wonderful observance is the interaction
between guests that have never met before. In the mornings as guests arrive for breakfast
they begin exchanging polite greeting, move on to discussing travel itineraries, and then
on to share some travel experiences. Within fifteen or twenty minutes, the room is filled
with laughter and animated conversation. So often, the breakfasters conclude the meal with
exchanges of address, plans to meet elsewhere, and promises to keep in touch. Maybe they
will and maybe they won't but for a special time, they have connected in a truly joyful
way. I wonder - had these folks been seated near one another at a Sunday Brunch at a
Sheraton or Hilton Hotel, would they have related to one another so openly, so
delightfully? It is not very likely. In my own personal experience, even at special
interest functions people will usually talk with the people they know.
Being a Bed & Breakfast host is a lot of work.
It takes more time than you might have imagined. Like any professional production,
attention to detail can make or break the show. But, this job can be fulfilling for the
creative energy that so many other occupations tend to stifle.
The cordial environment of that Bed &
Breakfast that you so much enjoyed and would like to emulate is illuminated with a certain
difficult to define quality. Whether it is a Rustic lodge, draped Victorian, spare Shaker,
elegant Federal, chrome and glass Bauhaus, the backdrops are varied but tangible. What the
successful keepers of small Inns and Bed & Breakfasts provide for their guests goes
beyond the delightful architecture and furnishings. It is, a warm, welcoming atmosphere
expressing the personality of the hosts, while leaving plenty of room for their guests to
express their personalities. It's an unspoken invitation to participate in a special
little drama.
It's
the Law - Regulations regarding health and safety for Bed and Breakfast establishments
Perhaps the most daunting prospect before the new Bed & Breakfast owners is
apprising themselves of the myriad of rules and regulations with which their new Inn must
comply. Codes, regulations, statutes and restrictions can comprise a mine-field through
which the provider of services to the public must navigate. Even if you are considering
the purchase of an established Bed and Breakfast, be aware that codes and such are revised
continuously, and a change of ownership may require compliance with regulations that did
not affect the previous owners. Nearly all States have uniform Health and Safety Codes,
often augmented, but never mitigated by County Regulations. A brief Sampling of provisions
in California's, Oregon's and Washington's rules regarding dishwashing follows:
Oregon
33-170-050 DISHWASHING- Bed and Breakfast Facilities shall comply with
provisions of OAR 333-154-020 and 154-030 for manual and /or mechanical cleaning and
sanitizing of equipment and utensils, however, at the option of the owner or operator a
domestic or home style dishwasher may be used provided the flowing performance criteria
con be met: (f) The pressure of the final rinse water supplied to the dishwasher shall not
be less than 15 nor more that 25 lbs per sq. inch. (Dept. Human Resources Oregon Health
div. T00 Summer NE, Salem, Or. 97301)
California
Article 17-RESTRICTED FOOD SERVICE TRANSIENT OCCUPANCY ESTABLISHMENTS
…..shall comply with provisions of subdivisions (b) to (e) inclusive, of Section
27623, or at the owners option, shall utilize a domestic or commercial dishwasher for the
purpose of cleaning and sanitizing multiservice kitchen utensils and consumer utensils;
provided, that such a dishwasher is capable of providing heat to the surface of the
utensils of a temperatures of at least 165 degrees Fahrenheit. (State of California Dept.
of Health and Services 714 P. St. Sacramento, CA 94814.)
Washington
WAC 246-215-100 EQUIPMENT AND UTENSIL CLEANING AND SANITIZING (b)
Mechanical dishwashing which washers and then sanitizes by: (i) A high temperature final
rinse with a minimum of 180 f. measures by gauge; (ii) A high temperature rinse with a
minimum of 160 F. measured at the surface of the utensil; (iii) An approved concentration
of chemical sanitizer, automatically dispensed…. (Community/environmental Health
Programs Olympia, WA 98504-7826)
What are you looking
for in a Bed & Breakfast (Check list)
When planning your Bed & Breakfast Inn or Small Motel/Hotel there are items to
consider, please be prepared to discuss these as we engage in our counseling sessions. I
will educate you to the present market and all available inventory of interest to you. In
addition, I will represent you, maintain confidentiality of your information including
anonymity if you so desire, as well as provide instant information about new listings.
This form can be printed, faxed, saved or E-mailed.
Sample Analysis
Sheet
How to assess profitability and potential in a Bed and Breakfast prior to purchase.
Property: My New Job for Fun and Profit
List Price: $350,000
Current Room Rates:
1 - King Suite with private bath - $75 a night
$75 x 1 = $ 75 x 365 days = $27,375
3 - Queen Suites with private baths - $65 a night
$65 x 1 = $ 65 x 365 days = $71,175
Total $98,550
Gross income based on occupancy rates: (does not include any Special
Events income)
RECIPE FOR A SALE
There are 6 main ingredients that make up the sale of your
Bed & Breakfast:
Location : We usually
cannot move a house! To coin the favorite phrase of appraisers: "Location, Location,
Location." The pricing of your property must reflect its location.
Condition: The upkeep
and presentation of your property is crucial to obtain the highest value for your Bed
& Breakfast in any given market at any given time. The pricing of your property must
reflect its condition.
Price: Price is the
number one factor in the sale of a home. A property is really only worth what one person
is willing to pay another to gain ownership. Price must be in direct relationship to the
other 4 ingredients and it is the most important of all!
Terms: The more terms
available on your property the more potential purchasers you reach. The pricing of your
property must reflect the kinds of terms available to purchase it.
The Market: i.e.
Interest Rates, Competition, and the Economy all make up and influence the state of the
Market when you sell your Bed & Breakfast. The pricing of your property must reflect
the current status of the Market.
Records: In
order to assist the property you must have records to back up the ability of the property
to hold it's own. If you are currently running the property as a viable Bed &
Breakfast make sure your books are in order. As an independent contractor, I know that we
tend to write off all the items we can on our taxes, however to ensure the highest price
for your property, two (2) years prior to selling your property make sure to pay taxes to
show true worth of the property for lending purposes. It will also help you in purchasing
another property or business.
When all of the above ingredients are in agreement we have a
sale! If just one is out of line, it will take a longer time to sell, and the more
ingredients there are out of line the longer it will take before the sale of your Bed
& Breakfast takes place.
MARKET CONDITIONS
Times have changed in the real estate business.
Real estate marketing has changed dramatically since the first real
estate transaction has taken place. One of the best marketing strategies was to just stick
a sign in the yard and run a newspaper ad. Today, things are quite different.
You need more than the same old things to get your Bed & Breakfast
sold.
I know that exposing your Bed &
Breakfast to as many people as possible is the key to selling it for a fair price in the
shortest amount of time.
Could you be getting shortchanged?
Getting value for your money is as important today as ever. When you ask
me to sell your Bed & Breakfast, you will not only get me, you will have access to my
entire team. Including all the marketing programs available at no additional cost to you.
Before you choose an agent , ask them if they offer a Marketing
Plan, Seller Service Agreement, or what programs do they offer for their fee.
PRICING IT RIGHT IS THE KEY
If a property doesn't sell within a reasonable time, taking in account
for market conditions, usually it has to do with price.
Price is determined by the
market & the buyers. We look to previous sales that have taken place in your
area, adjust as necessary for square footage differences, lot size, construction, age,
bedrooms, baths and overall appearance. Also the correlation between current listings and
listings that did not sell are added to the equation. All this information is correlated
and an opinion is given. This is normally called a Market Analysis.
A price is determined...
