Last week, PFK Consulting sent out a very favorable press release forecasting a continuing rise in hotel performance in the US. Here in NH and VT, we have experienced a high level of tourism resulting in increased performance for most hospitality properties in 2014. In my conversations with lodging operators, mostly in the White Mountain area of NH, most have reported an increased occupancy and higher ADR.

Now that the successful summer of 2014 is over, we are encouraged with the optimistic projection for 2015 and the near future.

This period of increasing profits, along with increased consumer confidence and optimistic forecasts, makes for an ideal time to sell your hospitality property. Many owners have been sitting on the sidelines as the economy struggled, waiting for a more appropriate time to sell. Any owner who has been waiting, or contemplating a sale, should consider acting during this prime transactional environment.

Some highlights of the PFK press release:

• The U.S. lodging industry will achieve 65 percent occupancy in 2015, the highest national occupancy rate since STR, Inc. began reporting data in 1987
• By year-end 2015, PKF-HR projects that the demand for lodging accommodations will have increased 25.8 percent since the depths of the recession in 2009, while the supply of hotel rooms will have grown by just 5.6 percent.
• “An ever-improving economy, and the favorable relationship between supply and demand, have led to significant growth in both revenues and profits from 2009 to the current year. We expect this trend to continue through 2017,” said R. Mark Woodworth, president of PKF-HR.
• “The best news for U.S. hotel owners and investors is that the combination of high occupancy levels and significant real ADR growth will perpetuate strong bottom-line gains. PKF-HR is projecting the current three year streak of double-digit gains in net operating income (NOI) to continue through 2016,” Woodworth noted. “We have not seen six years of such strong and sustained profit growth in the 78 years PKF has been tracking the U.S. lodging industry.”
• PKF-HR’s forecasts of positive performance apply to almost all aspects of the U.S. lodging industry. “Up to now, the economic recovery has mostly impacted high-income, highly-educated, and high-skilled people. This has led to an imbalanced pattern of lodging recovery that has favored upper-priced properties and large coastal markets,” said John B. (Jack) Corgel, PhD.
• PKF-HR forecasts, that on average, the lower-priced chain-scale segments will achieve greater RevPAR growth (8.4 percent) in 2014 compared to the upper-priced (7.1 percent) categories.

PKR-HR offers the following summary of its 2015 forecast:

• Supply: 1.3%
• Demand: 2.2%
• Occupancy: 0.9%
• ADR: 5.7%
• RevPAR: 6.7%
• NOI: 12.4%

These projections and estimates are based on the whole US lodging market. New Hampshire and Vermont are expected to participate in this national momentum, but there are certainly variances from region to region.

For the full report from PFK, go to: http://www.hotel-online.com/press_releases/release/pkf-hr-forecasts-record-occupancy-for-2015

CenterPoint Business Advisors provides you this information with the intent of helping business owners realize the full value from their hospitality business. CenterPoint assists business owners to build the value of their business, to plan for an exit from their business, to value their business, and to broker the sale of their business. Please contact us if you are considering a long or short term exit from your hospitality business.

O.J. Robinson of CenterPoint has many years in the hospitality industry in New Hampshire. He is the former owner of Parker’s Motel in Lincoln and is one of the owners of the Whale’s Tale Waterpark in Lincoln. He has provided consulting, exit planning, and brokered the sale of numerous lodging properties of various sizes.   oj@cpointadvisors.com

The Carter Notch Inn is the perfect retreat in the Mt. Washington Valley and has been hosting guests for decades. The inn is located adjacent to the Eagle Mountain Golf course and Jackson cross-country ski trails and within walking distance of the Jackson Falls, Highfields Dining Room and Eagle Landing Tavern. There are eight relaxing, comfortable rooms, an outdoor hot tub, a spacious living room with a fireplace, and a dining room where a country-style breakfast is served.

Dan & Donna Leyden are now the new, proud owners of this landmark business. They have long dreamed of owning the perfect inn where they would be able to host guests, cook delicious breakfasts, and live in an area that most people only get to visit. After looking at several inns that were for sale, they decided to more actively pursue an acquisition and hired CenterPoint Business Advisors to assist them with their search.

Upon first seeing the Carter Notch, they knew this was the place for them. “We love the Jackson area and absolutely fell in love with the Carter Notch Inn. This is picture-perfect spot overlooking the mountains and golf course.”

The Leydens plan to maintain the high standards and reputation of the Carter Notch by continuing to offer excellent service, superior accommodations, and a hearty, delicious breakfast. Guests will certainly feel welcome after being greeted by Donna’s charm and Dan’s joyous laugh.

This historic property was built circa 1890 by Cyrus E. and Marcia Gale, owners of the adjacent Eagle Mountain House Hotel, as their residence and annex to the hotel. In 1994, the residence was purchased by Jim and Lynda Dunwell, experienced innkeepers, who proceeded to restore, rebuild, renovate and redecorate the property making it into a charming a 8 guestroom bed and breakfast inn with the name Carter Notch Inn. Based on their past experience from owning and operating other inns in Mt. Washington Valley they quickly established a very successful hospitality business.

In 2004 the Dunwells decided to retire and sold the Inn to Richard Green and Sally Carter from the United Kingdom. Dick and Sally had been to New England on several vacation trips and decided they would love to own and operate a small inn. They fell in love with the Carter Notch Inn and the Jackson area and have made many friends while living there and hosting visitors.

Over the next 10 years Dick and Sally built up the business to the point that Carter Notch Inn became recognized by the reviewers at Trip Advisor as one of the top bed and breakfast inns in all of New England. They decided that that after 10 years it was time for them to take on the challenges and rewards of a larger facility and decided to market their property for sale.

“OJ and I are proud to have been involved with the sale of this historic Inn.  The Carter Notch Inn is truly a beautiful facility,” said Dick Badger, owner of Badger Realty.  “We’re excited for Dan and Donna Leyden, the new owners and all the potential this inn brings with it.”

The sale of the Carter Notch Inn is an additional indication of an improving economy and increasing business transactions.

O.J. Robinson of CenterPoint Business Advisors, Inc. in Franconia, NH represented the Leydens in this transfer. O.J. has been designated a Certified Business Intermediary (CBI) by the International Business Brokers Association (IBBA). He is the former owner of Parker’s Motel in Lincoln and has transferred the ownership of numerous hospitality properties throughout New Hampshire. CenterPoint specializes in exit planning, valuation & brokerage throughout NH, MA, and VT.

The Sellers were represented by Dick Badger of Badger Realty, selling the most beautiful real estate in the world. The Buyers were financed by Service Credit Union, based in Bedford, NH and the US Small Business Administration.

Pictured above are 3 generations of owners of the Carter Notch Inn along with Dick Badger, Realtor. From the right: Lynda and Jim Dunwell, original owners of the inn. New owners, Donna and Dan Leyden. Previous owners, Sally Carter and Dick Green. On the far left is Dick Badger, Senior Partner at Badger Realty, North Conway, NH who the was instrumental in the past two sales.

Right now, CenterPoint has the following active buyers in its database:

Buyer A: He grew up in the grocery business and ran his parents SuperValu. He is looking for store in Mass/NH. Has $200K cash to invest
Buyer B: NYC banker for 20+ years. Grew up in VT working for Hannaford. He has $500K to invest. Wants to move back to New England.
Buyer C: Owns three grocery stores in ME & NH. Aggressively looking for additional stores. He attempted to acquire a store in NH recently. This guy is READY TO BUY!
Buyer D: He owned a 6+ chain of convenience/gas stores. He sold them and his non-compete has expired. He is looking to build another collection of quality convenience stores in NH/VT.
Buyer E: He owns two large stores in upstate NY and wants to expand to VT. He is looking for larger grocery stores.

Right now, CenterPoint has the following inventory of grocery stores:

Notice the imbalance? It is no longer a “Buyer’s Market”. Now is a good time to find a buyer for your store.

CenterPoint has represented the owners of numerous grocery and convenience store in the sale of their stores. The Buyers have consisted of existing store operators, relocation buyers, serial entrepreneurs, and local business owners. We have the experience and skills to value your business and transfer it to a new owner in a way that gets you the most value. We have many happy clients that are ready to share with you their satisfaction with CenterPoint.

 CenterPoint assists the owners of small businesses throughout New England with:

Business Brokerage: We will represent you and guide you through the business transfer process. We are experts at finding buyers and assisting them with overcoming all of the obstacles of buying a business while we represent you, the seller.

Business valuation: Helping you quantify the value of your business and understand how the value of your business can be increased

Business consulting: Helping you prepare your business for sale, improve the value of your business, and create a business plan and obtain financing.

Exit planning: Working with you to plan for your eventual exit from your business, whether this is a transfer to family, employees, or a third party.

Every business owner starts or acquires a business with the dream of happiness and success. It is sad to see that so many owners end up so burnt out that they have to sell. Unfortunately, burnt-out owners are often the least prepared to sell their businesses. Burn out often causes business performance to decline. Additionally, some of the causes of burn out also detract from the value of the business. An owner who has all the knowledge and makes all the decisions will get burned out more quickly and will have more difficulty selling a business with inadequately trained or experienced employees to help the new owner.

When is the BEST time to sell your business? It is when both you and your business are ready. The right time is:
• Before you stop looking forward to going to work
• Before you feel overwhelmed
• Before you stop seeking ways to grow your business
• Before you have lost your drive and are just going through the motions
• After you have trusted employees to whom you delegate responsibilities and decisions
• After your financial records are in order
• NOT when you think the market is “just right”

CenterPoint Business Advisors is sending you this information with the intent of helping you to realize the full value from your business. CenterPoint assists business owners to build the value of their business, to plan for an exit from their business, to value their business, and to broker the sale of their business. Please contact us if you are considering a long or short term exit from your hospitality business.
O.J. Robinson of CenterPoint has been designated a Certified Business Intermediary by the International Business Brokers Assn. He is the former owner of Parker’s Motel in Lincoln and is one of the owners of the Whale’s Tale Waterpark in Lincoln. He has provided consulting, exit planning, and brokered the sale of many different types and sizes of businesses. oj@cpointadvisors.com

FACTS:

• ·         YouTube is claiming that more than 1 billion unique users visit its website each month.
• ·         Users spend more than 6 billion hours watching videos.
• ·         More and more businesses are using videos to promote better awareness of their products.
• ·         YouTube is the most used site for travel videos.
• ·         Travelers are increasingly watching and uploading travel-related videos. 43% of Personal Travelers, 63% of Business and 58% of Affluent Travelers are watching travel videos – and it’s almost an even match between professionally produced videos and trip reviews or videos created by “people like me.”

• Bookings are 67% more likely to happen when a video tour is available.

The key to turning lookers into bookers is found in delivering creative, yet relevant, content that informs and entertains travelers and prospective guests, and there’s no better vehicle to do that than video.

Authentic, compelling and informative video content will entice travelers and convey a hotel’s unique experiences to online visitors. A video embedded on the homepage of the hotel’s website and also uploaded to YouTube and the other leading social media channels can be what sets your property apart from other destinations. Video conveys visual and emotional touch points which are present in almost every travel offering, and that is what drives bookings. With the constant expansion of Internet advertising, hoteliers need to discover the impact that online promotion with video can have on travelers.”

Are you using video to market your hotel? Those of us who have been in the hospitality industry for many years can remember when we were first encouraged to create a website. Next came communication by email. Now we have to have a Facebook page. The next imperative marketing tool: the VIDEO.

Video can increase traffic to your website, appear in Google search results and help convert more sales opportunities. It is becoming a form of marketing expected by customers today. A picture is worth a thousand words, and online hotel videos can help your property capture more guests. It is not just costly professional video productions that get noticed online. If you have a computer, video camera, a bit of know-how, and do your research, hotels can achieve excellent results at a fraction of the cost.

When these videos are embedded on the hotel’s website PLUS shared on YouTube and other social channels, it increases visibility and ultimately leads to more bookings and revenues. When tagged and optimized for search engines, videos dramatically increase a property’s visibility and improve search rankings.”

There are numerous videos on You Tube that are professionally created marketing tools for New Hampshire and Vermont hotel/motels that are not linked from the hotel’s website. I find it difficult to understand why a hotel would create the video without establishing a link.

Does your hotel have a video available for prospective guests to view? If not, will you create on in 2014? If so is there a link available from your website?

This North Conway motel offers an informative video promoting their accommodations.

http://www.youtube.com/watch?v=xmxFiN12Uco

CenterPoint Business Advisors wants to help you to realize the full value from your hospitality business. CenterPoint assists business owners  build the value of their business,  plan for an exit from their business,  value their business, and  broker the sale of their business. Please contact us if you are considering a long or short term exit from your hospitality business.

O.J. Robinson of CenterPoint has many years in the hospitality industry in New Hampshire. He is the former owner of Parker’s Motel in Lincoln and is one of the owners of the Whale’s Tale Waterpark in Lincoln. He has provided consulting, exit planning, and brokered the sale of numerous lodging properties of various sizes.   oj@cpointadvisors.com

Gary & Sandra Plourde are seasoned hotel and tourism professionals having worked globally for major hotel chains such as Forte, LeMeridien, Marriott & Starwood hotels. These experiences included hotels in Europe and South Africa. Gary, a native of Maine, returned to the US with Sandra and their two children, Sofia & Quintin, to apply their experience toward a family owned and operated resort property. Broker Earle Wason, from Wason Associates, introduced them to the Christmas Farm Inn and under his representation of the Tolley’s secured a Joint Venture Agreement in 2010 for the Plourdes to operate the inn. The Plourdes applied their combined expertise into launching an impressive business and service improvement process at the inn to reach new heights of hospitality and business performance.

The Plourdes took over as full owners in late May and are continuing their “march to service excellence” at the Christmas Farm Inn & Spa. The inn offers 41 varied rooms & suites, indoor & outdoor pools, full service spa, and full service dining. The inn can be viewed at http://www.chrismasfarminn.com (800-443-5837).

This acquisition was financed by Northway Bank in New Hampshire.

Michael F. Coyle Principal of CenterPoint Business Advisors, Inc. in Franconia, NH provided transaction advisory services to the Plourdes. This included deal structure and negotiation, assembling a professional transaction team, assistance in securing financing, and support in transitional services. These services are part of CenterPoints’ Strategic Acquisition Services focused on assisting executive-level buyers and companies acquire businesses.

Coyle has been designated a Certified Business Intermediary (CBI) by the International Business Brokers Association (IBBA) and is named as an “Industry Expert” in the hospitality industry by Business Brokerage Press. He has transferred the ownership of more than 30 privately-branded hospitality businesses throughout New England. CenterPoint specializes in exit planning, valuation & brokerage throughout NH, MA, and VT. For more information contact Michael F Coyle. at 603-823-5999, http://www.cpointadvisors.com.

FOR IMMEDIATE RELEASE — August 1, 2012

Franconia, NH,  Michael F. Coyle, Principal of CenterPoint Business Advisors, Inc.  (wwwcpointadvisors.com), is pleased to announce that he has acquired the firm of Edmund & Wheeler, Inc. of Littleton, NH.  Edmund & Wheeler, Inc. was founded 25 years ago by George E. Foss III and has become a leader in providing solutions to clients associated with tax free exchanges of real & personal property under IRS Revenue Code Section 1031.  Edmund & Wheeler has earned a top position in this industry having completed thousands of successful exchanges and is the first choice for exchanges that require complicated scenarios.

Edmund & Wheeler, Inc will co-locate with CenterPoint Business Advisors in Franconia, NH but will continue to operate as a separate company with the same service team, including consulting & exchange services by George E. Foss III and John D. Hamrick.  The firm’s services will be integrated with CenterPoint Business Advisors valuation, exit planning & business intermediary services.

Michael F. Coyle states “ I am pleased with the opportunity to integrate Edmund & Wheeler into our family of services.  This acquisition extends our service range while allowing us to better leverage our existing system and resources.  The two companies provide services mainly to the same demographic – clients who wish to re-balance their business and/or property assets into some other form to support their next life stage.  Both firms also work extensively with other professionals (Lawyers, CPA’s, Bankers, Real Estate Professionals & Wealth Planners) in providing a team solution.  I see many synergies that can be realized by combining our professional referral sources.  I am pleased that George will continue to provide leadership to the team around 1031 Exchange topics.  His knowledge and experience in the industry is un-matched and an essential element of our future growth.”

George E. Foss III further states “This is an ideal transaction from Edmund & Wheeler’s perspective. The same people our clients and friends have dealt with in the past are involved and the level of service everybody has enjoyed in the past will only increase with the introduction of new technology and communications systems. Personally, I am looking forward to it.”

The combined offices are now at 651 Main Street, PO Box 863, Franconia, NH 03580
For more information or to discuss our services contact, Phyllis Grima at 603-444-0020 or visit us on line www.section1031.com. 

Overall, the U.S. hotel industry’s occupancy rose 4.4% to 60.1%, its ADR was up 3.7% to $101.64 and RevPAR increased 8.2% to $61.06.
2011 was the first time since 2008 that the industry ended the year with occupancy of more than 60% and an ADR of more than $100. U.S. hotels reported a 0.6% increase in supply in 2011 and a 5% demand increase for the year. Demand has increased 5% or more only three times since 1987.
“2011 was a strong year for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “Room-supply growth continued to drift downward as room demand reached record levels during the year. Though occupancy and ADR were still below 2007 and 2008 levels, it was still encouraging to see the industry experience a solid rebound during a period of considerable economic difficulties.”
The U.S. hotel industry is expected to report steady RevPAR increases in both 2012 and 2013, according to the most recent forecast from STR in partnership with Tourism Economics.
Overall in 2012, the U.S. hotel industry’s occupancy is expected to rise 0.5% to 60.4%, its average daily rate is projected to be up 3.8% to $105.45 and its revenue per available room is planned to increase 4.3% to $63.68.
“2012 may prove to be challenging for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “There are a number of issues that will confront the industry and overall economy this year. We believe that given how well the hotel industry did during 2011, it will be difficult in 2012 to show significant growth. However, we remain optimistic the industry will continue to report modest increases in 2012.”

So, how did your business fare in comparison? As you know, each region and individual hotel can vary greatly from these national statistics. Many of the hotels that I work with were performing well ahead of 2010 until December. The lack of snow hurt the December 2011 performance and continues to reduce room demand in 2012.
Thinking of Selling?
At CenterPoint, we have seen a significant increase in buyer activity. Inquiries on all types of businesses are at a higher level than we have seen in years. Other business brokers are experiencing the same increase. This is a great sign for any hospitality owner thinking about exit options.
If you think it may be time for you to retire, or move on to other ventures, I encourage you to call or email me to talk further about an exit from your business.

O.J. Robinson of CenterPoint has many years in the hospitality industry in New Hampshire. He is the former owner of Parker’s Motel in Lincoln and is one of the owners of the Whale’s Tale Waterpark in Lincoln. He has provided consulting, exit planning, and brokered the sale of numerous lodging properties of various sizes. oj@cpointadvisors.com

Michael F. Coyle Earns Certifiied Exit Planning (CExP) Designation

Franconia, NH 2/23/2012:  Michael F. Coyle, CBI, CExP, member of The BEI Network of Exit Planning Professionals, recently earned the designation of a BEI Certified Exit Planner (CExP). The BEI CExP designation is the standard for Exit Planning certification. Through training, rigorous testing and in-depth Exit Plan Creation coursework, Michael has advanced is expertise in providing comprehensive, professionally executed Exit Planning services to owners of privately held businesses.

“Exit Planning Professionals who successfully complete the BEI Certified Exit Planner program have come to be known as premiere Exit Planning Professionals because their in-depth knowledge and demonstrated application of The BEI Seven Step Exit Planning Process  perfectly positions them to counsel business owners and their advisors on a wide array of business issues ranging from building value within a business to identifying exit objectives, addressing key employee incentive planning and retention issues, incorporating business continuity planning, and establishing wealth preservation,” said John Brown, President of Business Enterprise Institute.

“This is another example of the ongoing personal and professional dedication CenterPoint Business Advisors brings to our business clients,” said Michael Coyle.  “We continually strive to increase our ability to serve our clients by achieving the highest professional and education standards in each of our service areas.”

The business owner community benefits from engaging an Exit Planning Professional who holds the BEI CExP designation by having greater confidence that the service they receive is professional in quality, adheres to ethical and industry standards of practice, and meets a level of expertise BEI deems credible and worthy of one of its certified members.

CenterPoint Business Advisors was formed in 2004 to assist business owners throughout New England in planning for and executing a successful exit from their businesses.  CenterPoint offers a suite of professional services including; Comprehensive Exit Planning; Business Valuation & Appraisal; Value Building Consulting; Business Intermediary services.

For more information, or to contact CenterPoint Business Advisors, call 888-988-0999 ext. 101 or, go to www.cpointadvisors.com,