Hospitality Investment Broker, representing Maine buyers and sellers

UNIQUE SELLING PROPOSITION: What is your USP?

noreply@blogger.com (dana Moos) — Mon, 22 Feb 2021 14:05:00 +0000

What makes your inn unique? What makes your inn memorable? What makes your inn marketable? A strong USP. Your Unique Selling Proposition.

Any time I speak about the Norumbega Inn in Camden, inevitably the response is "OH, the castle, I know that one!".

Norumbega is an architectural wonder!

I personally know from my inn ownership, how important having a USP is.

My inn, although 8 rooms, was very small. Small common space, postage stamp lot, very non-stately from the exterior. Don't get me wrong, it was cute, but nothing was visually memorable. As a result, I had to create my USP because mine wasn't inherent. So mine became about my food (and to some extent the water view and private decks on some rooms). I always felt I had to overcompensate for not having that stately, wow factor curb appeal.

So when I had the opportunity to list this magnificent 'castle by the sea' in Camden, I thought to myself 'wow, talk about not having to create your USP when you have one built in you can just expand upon'...

The curbside recognition of such a unique property is something I wish I had, and that's just on the exterior.

Check out the listing details full property photo album on my website, and contact me with any questions!

Hesitant to take on an Inn with a renown restaurant business?

noreply@blogger.com (dana Moos) — Mon, 22 Feb 2021 13:07:00 +0000

While Hartstone Inn's restaurant has long been a staple in the restaurant scene in Maine, and with nationwide recognition, the lodging side of the business is very strong for the industry.

In 2019, the rooms side of the business represented nearly 70% of the revenue and their room occupancy is a near match at 68%.

The national occupancy for hotels in 2019 was 66%, keeping in mind this is driven a great deal by the large cities with national brand hotels. The typical small inn or B&B with 4-11 rooms sees an average occupancy around 45%.

So Hartstone Inn, Restaurant and Hideaway is well positioned in the market, with a strong lodging business and restaurant small enough to manage but busy enough to supplement the income and help fill rooms. The lodging side of the business has far greater margin than the restaurant side, making this scenario ideal for someone hesitant to take on a restaurant with such a reputation. Just small enough for intimate dining on a smaller scale, with the much greater bottom line on the rooms side. Any way you look at this business, it's strong.

Built in 1835, the architecturally splendid Hartstone Inn and Hideaway is an enchanting escape in the heart of Camden. The Hartstone building is a fine example of a Mansard Victorian which features an iconic slate mansard roof with dormer windows and brackets which are the hallmark of the style.

This property offers three unique buildings, with 22 lovely rooms and suites and 1 apartment rental, with beautiful gardens and their well known, on-site 20 seat restaurant and bar, which is located in the Hartstone building.

For more information, check out the listing on my website and download the offering.

Contact me with any questions!

NEW CASH INCENTIVE FOR BUYERS (& potential benefit to existing loans)

noreply@blogger.com (dana Moos) — Wed, 17 Feb 2021 11:39:00 +0000

HOW DOES PART OF YOUR MORTGAGE BEING FORGIVEN FOR SEVERAL MONTHS SOUND? 🙌

In an effort to assist the hardest hit industries due to Covid-19, The 2021 Consolidated Appropriations Act has been signed into law with some truly amazing changes to the SBA 504 Program:

With the exception of 504 loans approved between 9/27/2020 and 2/1/2021, all existing SBA 504 borrowers not on deferment or catch-up will receive an additional three months of payment assistance beginning February 2021, capped at $9,000 per month per borrower

After the three-month period, borrowers considered underserved will receive an additional five months of payment subsidies capped at $9,000 per month for borrowers in the hardest hit industries, including food service and accommodation, arts, entertainment, recreation, education, laundry, and personal care services with the following NAICS 213, 315, 448, 451,481, 485, 487, 511, 512, 532, 61, 71, 72 or 812.

Payment subsidies for six months will resume for new SBA 504 loans approved between February 1 and September 30, 2021, capped at $9,000 per month, per borrower.

The 0.5% Bank, SBA Participation Fee and the 1.5% CDC Processing Fee will be waived for all loans approved between December 28, 2020 through September 30, 2021.

The timing of the following changes is still pending:

Any CDC with ALP status, including CDC New England, will be given unilateral authority to approve, authorize, close, and service SBA 504 loans up to $500,000, which will significantly speed up the approval process not only for loans this size, but for larger loans that still need to be submitted to the SBA.

Big changes to SBA 504 Debt Refinancing:

SBA 504 “Debt Refinancing with Expansion” will change. Previously, you needed $2.00 in new debt for every $1.00 in existing debt. Now, it is a 1 to 1 ratio. This program has always allowed for refinancing of existing SBA 504 and 7A loans.

SBA 504 “Debt Refinancing without Expansion” has always allowed for a limited amount of cash out, but you could not refinance if there was existing SBA 504 or 7A debt. Now you can. Also, the debt only needs to be on the books for six months rather than 2 years. In the past, all payments had to be 30 days or less past due for the previous 12 months. This requirement will be dropped and it will become a credit decision.

The existing senior lender (bank, credit union, etc.) tied to an SBA 504 loan will be allowed to refinance their loans and include some level of cash out for business operating expenses. This provision will provide critically needed working capital.

Contact me and I can put you in touch with an SBA approved lender!

As of the date of this post, the incentive was 6 months. As of today, they may have modified this to 3 months plus paid closing costs.

Catching You Up On What's Been Happening...

noreply@blogger.com (dana Moos) — Thu, 28 Jan 2021 13:38:00 +0000

Far too much time has passed since the last post. Never did I think that during the pandemic I'd be having the busiest 12 months since I've been selling hospitality properties. And I just haven't had the time to keep up with posting market activity. I am adding a hospitality specialist to The Maine Inn Team, so stay tuned for that announcement in the next month or so!

In November I sold The Inn at Southwest in Southwest Harbor. I know this one very well as it sits across the driveway from my former inn, Kingsleigh Inn. And then a couple weeks ago, I sold The Inn at Park Spring in Portland. Next up will be Pine Grove Cottages in Lincolnville and Captain Lindsey Inn in Rockland, with a few more sales on the horizon.

I will have a few new listings coming on board, but none as a result of the pandemic or sellers' wishes to just get out. It is simply time for each, either for retirement or time to do something new before retirement. A few of the listings have some amount of food service and events business and range in size from 10 to 16 rooms. The price point will be $1.5m and up. Stay tuned!


Inn at Southwest

Inn at Park Spring

Captain Lindsey Inn

Pine Grove Cottages

The Lending Climate for Lodging/Hospitality Properties During Covid - Updated

noreply@blogger.com (dana Moos) — Mon, 21 Dec 2020 11:21:00 +0000

Back in October I provided an update on the lending climate during the pandemic.

There are no shortage of inn buyers or sellers these days. It's almost as if the pandemic has placed an opportunity to hit the reset button, giving many a reality check of what's important.

But are the banks lending? That's the question on everyone's mind.

I closed one inn in February this year. Then Covid hit. Three deals then fell through......then September into November I sold 3 more inns.

I have a list of hospitality lenders in Maine, but of that list, Machias Savings really seemed to be the one most interested in taking on new hospitality loans, whereas others were looking to wait until the first quarter of 2021, giving them time to assess the state of the industry a bit before jumping back into things. Many who already had portfolios saturated with hospitality loans were assisting their customers with their loans, forgiveness, PPP, etc.

As of this date, have a few more inns under contract due to close in the first quarter of 2021, but the banks are looking for buyers who are stronger financially and who have a background that can lend itself to the hospitality business. Depending on the financial performance of the inn, they are looking for a buyer to have enough liquidity to potentially cover up to 2 years of mortgage payments.

We are feeling optimistic as we head into 2021 with the much anticipated Covid vaccine and the strong tourism season we saw in the fall 2020.

Feel free to call or email me to discuss any of this in detail.

NEW LISTINGS, NEW LISTINGS, NEW LISTINGS!!

noreply@blogger.com (dana Moos) — Tue, 13 Oct 2020 12:20:00 +0000

It's been a busy summer into fall this year!

New listings came on board (not driven by the pandemic, just coincidental):

Hartstone Inn and Hideaway, Lodging and Fine Dining in Camden, a confidential catering company in mid-coast, Oxford House Inn and Restaurant in Fryeburg, Captain Swift Inn in Camden, 76 Pleasant Street Restaurant in Norway and East Wind Inn and Tavern in Tenants Harbor! Click on the images for listing details.

These listings offer something for everyone - from 4 rooms to 23, with restaurants or bar and taverns, waterfront or in town, a catering company with a building that can be used for any number of businesses!

There have also been new price adjustments on some listings.

Contact me for more info or just to talk. You don't know what you don't know!

Are you ready to hit the reset button for 2021?

The Lending Climate for Hospitality During a Pandemic...

noreply@blogger.com (dana Moos) — Tue, 13 Oct 2020 11:54:00 +0000

There are no shortage of inn buyers or sellers these days. It's almost as if the pandemic has placed an opportunity to hit the reset button, giving many a reality check of what's important.

But are the banks lending? That's the question on everyone's mind.

I closed one inn in February this year. Then Covid hit. Three deals then fell through......

Fast forward 6 months or so, I closed two inns last month, The Inn at Bath (bottom two photos) and Acadia Bay Inn (top two). Both buyers worked with Machias Savings Bank and both utilized an SBA deal offering incentive to close by late September. I've frankly never seen a bank push through a commercial loan so quickly but I also didn't realize Machias is an SBA preferred lender, and as such, perhaps they have means that other banks don't.

I have a list of hospitality lenders in Maine, but of that list, Machias Savings was the only one interested in taking on new hospitality loans, whereas others were looking to wait until the first quarter of 2021, giving them time to assess the state of the industry a bit before jumping back into things.

My understanding of why Machias might lend and others might not or why others might be more selective of what deals they would be willing to lend on would be that many other banks with a large portfolio of existing hospitality loans have been busy in 2020 forgiving loans, or deferring payments in order to help their current hospitality clients stay afloat. Machias may not have had a hospitality heavy portfolio in recent years and took this as an opportunity to grow theirs.

I have continued buyer interest and Machias Savings seems eager to continue down the path with hospitality buyers. And with the tourism season getting busier into the fall, things seem a lot more positive going forward than they did earlier in the year.

LET'S HOPE THAT 2020 TURNS THE CORNER AND LEADS US INTO A VERY POSITIVE FUTURE IN 2021.

Contact me if you have any questions at all or want me to introduce you to a Machias Savings loan officer!

ZOOM Aspiring Innkeeper Workshop Schedule is Posted

noreply@blogger.com (dana Moos) — Sun, 30 Aug 2020 14:12:00 +0000

ZOOM ASPIRING INNKEEPER
WORKSHOP SCHEDULE DATES

October 3 & 4
10a-1p each day

November 7 & 8
10a-1p each day

November 28 & 29
10a-1:30p each day

____________________________

The Maine Inn Team launched our Aspiring Innkeeper Workshops for 2020 and then Covid Hit.

Like so many businesses, we are looking for ways to adapt to this new present day challenge. Things seem to change so quickly and so must we.

We are seeing an uptick in interest from prospective buyers, particularly those looking to get out of Covid hot spots and up to Maine where the population may be less and the beauty, experiences and overall quality of life Maine has to offer is unsurpassed.

Our two-day weekend workshops were scheduled for 2020, but with the uncertainty of Covid-19, we are looking for ways to provide all of the same important content, but in ZOOM fashion instead. This will save you time, money and effort if you prefer to learn from home along with other aspiring innkeepers!

More information about our aspiring innkeeper workshop can be found here: https://www.danamoos.com/seminars.html

The cost is $95 per weekend.

You can sign up for the workshops here.

We look forward to educating you!

Buyers Ask: How did the seller come up with the price?

noreply@blogger.com (dana Moos) — Wed, 13 May 2020 17:19:00 +0000

🏡 Offered at $1,500,000 🏨

A very common question I seem to get regularly from buyers is "how did you come up with the price?". That's a very good question.

I don't come up with a price, my sellers do. A listing agent advises, the client decides.

What I do is a very thorough assessment of the profit and loss statements, tax returns, and occupancy. We analyze the business that exists within the piece of real estate, not just the real estate (like the residential market). And then we back into a price that's defensible and financeable. We advise our clients of this price range, and they ultimately decide.

Do we ever list a property at a price well above the range we've suggested to a seller? SURE! And there are often legitimate reasons for doing so.

Is the property more marketable than another with similar net operating income? Is it in an ideal location? Does it have detached and private owner's quarters? Does it have larger than typical owner's quarters? Is there still room to increase revenue and occupancy? (thus leaving room for a buyer to grow the business), does it have an ideal lot for tented wedding and events? Does it have more than adequate parking? Is it within walking distance to town, yet on a desirable residential street? Does it have remarkable or historic features that buyers and guests are drawn to? Does it have really fabulous outdoor space for you and your guests to enjoy? Does it have a killer ocean view? Or a killer kitchen? Does it check off all the boxes on your list?

The point I'm trying to make is that we always start with a valuation of the numbers, because that's an important part what you are looking for in this lifestyle business. Are there sometimes reasons why you'd be willing to pay more? The answer to that is also SURE! You'll understand as you start to look at inns.

When we represent buyers and sellers, we know the numbers, we know Maine and its tourism industry. And we know how to help you evaluate everything that you'll need to in order to make an informed decision.

STYLISH new listing hits the market in Boothbay Harbor

noreply@blogger.com (dana Moos) — Thu, 07 May 2020 20:37:00 +0000

The chic Russell House was originally founded as a bed & breakfast by Mr. Harlow Russell. Over the years, the house has taken on many forms including a home, a restaurant, an office space, and now a restored bed and breakfast making it a unique place to stay in Boothbay Harbor.

Today, The Russell House exudes luxury and sophistication through its contemporary style and charming atmosphere. The upscale features and modern amenities create a luxurious Maine Coast getaway. Guests can relax in the stunning Lounge or enjoy the coastal Maine air outside on the spacious deck.

The Historic Russell House Bed & Breakfast is newly renovated and unique to the Boothbay Harbor Maine region, offering a charming and sophisticated contemporary style amidst the coastal community. All 8 guest rooms have en-suite baths, heat pump A/C units and beautiful glass and tile showers.

Set apart from the hustle and bustle of downtown Boothbay Harbor, this peaceful Maine setting is a perfect destination for intimate getaways, celebrations, or a relaxing escape to the Boothbay Harbor region. The inn is within 2 miles of the renowned Coastal Maine Botanical Gardens and less than 1 mile from the Boothbay Harbor Country Club & Golf Course.

Offered at $1,195,000. For more information see the listing on my website - https://www.danamoos.com/rh.html

financial details provided to qualified buyer with signed NDA

Going Concern Value - Inn Valuation

noreply@blogger.com (dana Moos) — Mon, 27 Apr 2020 19:18:00 +0000

An inn or bed and breakfast is a hybrid. Yes, it is a business that operates within a piece of real estate on a piece of land. But it is a commercial business with a residential component. So how does an appraiser go about valuing this hybrid business? It's not always easy for the buyer and seller to fully understand. So I'll try and simplify it.

There are several elements that make up business value: hard assets are land, building and furniture, fixtures and equipment (FF&E). Intangibles are goodwill, such as trade name, reputation, guest/customer base, repeat clientele, well established long term business, intellectual property, etc. These all have value, but are not a hard asset. Intangibles cannot be sold off like the land, building and FF&E can, but they certainly can have great value to the operation and performance of a business. But the components that make up the goodwill have very subjective values.

We talk about a business as a "Going Concern", which is the value of a company as an ongoing entity. This value includes the liquidation value of a company's tangible assets (land, building, FF&E) as well as the present value of its intangible assets (goodwill). The going-concern value is worked into the purchase price of a company, and is the main reason why the purchase price of a company tends to be higher than the current value of the assets of the company.

There are three different approaches to value, and the results are often weighted as a combination of two or three. They are "income approach", "cost approach" and "comparative market value approach".

So let's use the following example to talk about the income approach:

ABC Inn is under contract for $1,000,000. Based on standard commercial B&B lending, buyer puts down 25% of contract price, lender funds 75% loan to value.

"ABC Inn Appraisal Report - Market Value, Fee Simple, as a Going Concern"
Appraised Market Value: $1,000,000, allocated as follows:
Hard Assets:
Land/Building: $900,000
FF&E: $50,000
Goodwill: $50,000
The bank will loan 75% of hard assets and FF&E (of $950,000). This translates to:
Bank loan: $712,500
Buyer down: $250,000 (25% of contract price)
= $962,500 but the contract price is $1,000,000.

So who is going to fund the difference of $37,500? Now this is an example with a relatively low amount allocated to goodwill. Sometimes it's greater. The banks don't usually lend on goodwill or intangibles, simply because if a buyer defaults on the loan and the bank has to turn around and liquidate the assets, intangibles cannot be sold, only the hard assets can. So who's left to fund this? If the business performance qualifies, SBA might guarantee the goodwill portion of a loan which will allow the lender to fund the guaranteed portion of goodwill. If not, often a seller is asked to carry a note for the difference, or a buyer realizes what the goodwill is worth to them and they fund it, or a combination of both. But you can see how this could bring about a financing hiccup if a considerable portion of the appraised value is allocated to goodwill. The better the business, cash flow, and the reputation, the higher the possible goodwill value. Which means, the higher the cost to buy into this lifestyle business.

This is nothing new in commercial hospitality lending, but it's something that is being enforced possibly more than it was years back. Is this the new lending climate? We really aren't sure, but it appears it could be trending that way. So it's just something that buyers and sellers need to be aware of. Just another reason to work with an experienced broker.

I'll save HOW an appraiser arrives at the amount allocated to goodwill for another post!

Using your 401k to fund your inn acquisition

noreply@blogger.com (dana Moos) — Sat, 11 Apr 2020 17:51:00 +0000

While these are uncertain and unprecedented, times, there does seem to be a silver lining for those who have the benefit of being able to take this time to reassess their long-term goals.

A recent look at Google Analytics suggests that a number of people are doing just that. The past week looks to be not only above last week’s numbers but also higher than same-time last year. Clearly some people have a bit more time on their hands and are doing some research, looking specifically at lodging properties in Maine. Further, Dana Moos of the Maine Inn Team had a conversation with a potential buyer who said that she had been “taking this time to really look at what would make her happy” and that she “did not want to have her 401(k) totally tied to the market” but to have more control of it herself. All of this led to an interesting conversation of “ROBS” not to mention a positive outlook.

Rollover for Business Startups, ROBS, is starting to catch on and become much more attractive for those looking to start their dream business. ROBS is an investment vehicle that allows investors with 401(k) plans and Individual Retirement Accounts to use the funds to buy a business and pay for start-up costs. A four-step process allows the account holder to access the cash without paying early withdrawal penalties or taxes. It’s becoming increasingly prevalent among retirement account holders who aren’t ready to retire, but are looking for that next opportunity to have their own business. Essentially, you are investing in yourself and your ability to succeed.

ROBS “has become a very helpful tool to some buyers who could otherwise not raise the capital needed to purchase, or to purchase what they would really like,” says Dana Moos, Director of Lodging and Hospitality Brokerage at The Swan Agency Sotheby’s International Realty. “I’ve had at least three or four buyers use it in recent years.

Perhaps you have been wanting to start a business but were not sure of the funding or how to get started. If the B&B business sounds enticing in meeting great people and working for yourself, check out one of the Aspiring Innkeeper Workshops to hear more and learn more about ROBS. Our dates and more information can be found on www.danamoos.com or email dana@danamoos.com.

Two companies who handle ROBS are:

Guidant Financial https://www.guidantfinancial.com/financing-solutions/401k-business-financing/
Benetrends https://www.benetrends.com/programs/business-funding-solutions/401-k-ira-business-financing

Buying or selling an inn can be a relatively long process. We don't just take part in a quick transaction, we establish relationships. The sale is not our goal. Your success is our goal. And our relationship doesn't end at the closing table. – The Maine Inn Team, Dana and Tori

New Gorgeous Waterfront Listing across from Acadia National Park!

noreply@blogger.com (dana Moos) — Sun, 29 Mar 2020 21:05:00 +0000

Acadia Bay Inn sits on the ocean across Frenchman Bay looking directly at the mountains of Acadia National Park. The view and property are stunning.

The inn offers 7 very spacious guest rooms, 4 with ocean views and decks, all with lovely, renovated private ensuite baths.

The inn's parlor is the epitome of a 'great room' with a very large Inglenook fireplace, and bead board wood ceiling.

The inn has a common deck as well as guest room decks. And a staircase leads you down to the inn's 'pebble' beach.

A fantastic spot to spend time relaxing before or after a visit to Acadia, if you can tear yourself from the view.

Offered at $1,375,000

For more details, visit the listing page on my website and contact me with any questions. Financially viable from May-October season which can be extended.

New Midcoast Listing! 9 Cottages and Owner's Home in Lincolnville...

noreply@blogger.com (dana Moos) — Sun, 29 Mar 2020 20:38:00 +0000

Pine Grove Cottages sits between Camden and Lincolnville Beach in the heart of Midcoast Maine.

All 9 cottages have fully equipped kitchens and bathrooms, decks and grills for "Maine, the way life should be". The owner's home offers privacy, 2 bedrooms, 1 bath, sun porch, eat in kitchen and spacious living room. There's plenty of parking for all guests and owners. Open seasonally May-October. And they're pet friendly which is so appreciated for visitors to Maine!

Offered at $895,000

For more details visit the listing page on my website and contact me with any questions!

New Listing! Snow Squall Inn and Yoga Studio

noreply@blogger.com (dana Moos) — Mon, 17 Feb 2020 19:14:00 +0000

Snow Squall is an elegantly relaxing Bed and Breakfast conveniently located on coastal route 1 in Wiscasset, "The Prettiest Village in Maine". Just 2 ¾ hours north of Boston and 25 minutes north of Freeport's discount shopping, and LLBean. The town of Wiscasset is home to the famous "Reds Eats" voted the best Lobster Rolls in Maine, which is within walking distance from Snow Squall.

The Snow Squall Inn boasts seven guest accommodations with private baths, including three multi-room suites ideal for families or friends traveling together. Located on 1.46 manicured acres on historic coastal US Route 1, guests of The Snow Squall Inn enjoy walking-distance proximity to Wiscasset's downtown restaurants, galleries, and shops. The owners have meticulously updated and expanded the property, creating an idyllic coastal wellness retreat. A 2009 renovation of an auxiliary barn yielded a modern commercial wellness building with yoga studio and spa treatment rooms. The inn features two interior public lounges, air-conditioning in all guest suites, wide porches with rocking chairs, fireplaces in multiple rooms, and a large kitchen with commercial appliances, ideal for guest breakfast preparation. With the auxiliary income-producing commercial wellness space, the property is perfectly positioned for continued success as a bed & breakfast or for growth as a wellness retreat.

They also offer regularly scheduled onsite yoga classes and massage/bodywork sessions (by appointment only). For more information please refer to www.wickedgoodyoga.com
TripAdvisor Ranking#1 of 4 B&Bs in Wiscasset Snow Squall Inn rated “excellent” by travelers

This is a very well maintained property and financially feasible business. Currently a seasonal operation May-October but could remain open year round. Wonderful TripAdvisor reviews. Financials provided with signed non-disclosure agreement to qualified buyers. More details of the listing on my website. Offered at $825,000

Aspiring Innkeeper Workshop Schedule, Maine 2020

noreply@blogger.com (dana Moos) — Sat, 15 Feb 2020 13:19:00 +0000

Introducing our 2020 Schedule for Maine Aspiring Innkeepers

Buying or selling an inn can be a relatively long process. We don't just take part in a quick transaction, we establish relationships. The sale is not our goal. Your success is our goal. And our relationship doesn't end at the closing table.

We are fully immersed in the hospitality industry and focus on selling Maine Inns, Bed & Breakfasts and commercial real estate with a hospitality component, including restaurants and event venues. We have been in your shoes, whether as buyer or seller.

We offer years of cultivated contacts and resources for every aspect of your business, from acquisition to operations to preparing your inn for sale and beyond. Maine hospitality lenders, attorneys, tax accountants, hospitality association leaders, reservation systems, vendors, you name it. We cover it. Take a look at our workshop agenda for details on what we'll cover and at the workshop schedule for dates and details.

✮

The Maine Inn Team looks forward to meeting you!

New Innkeeper Workshops for Maine Aspiring and Current Innkeepers

noreply@blogger.com (dana Moos) — Tue, 04 Feb 2020 12:13:00 +0000

The Maine Inn Team is pleased to launch our Innkeeper Workshops with two offerings to choose from: Two Day Weekend Workshop for Prospective Innkeepers; or One Day In-Depth Workshop for Future Sellers.

As former innkeepers, one of the most often asked questions from guests is: "I have always considered owning a bed and breakfast. How did you get started?" This two-day workshop works through exactly that. How to get started, what to consider, financing, operations, and more. The Maine Inn Team, Dana and Tori,will walk you through major topics to consider: Marketing, Financials of Buying an Inn, General Operations, Food and Beverage, Making Your Inn Work for You.

These two-day weekend workshops will take place at various Inn locations throughout the state of Maine, providing you the opportunity to experience an Inn here in Maine and see what our hospitality is all about. The workshops will also feature guest presenters from the industry, such as tax attorneys, lenders, Reservations System representatives, Seasoned and New Innkeepers, and others.

These workshops are a unique opportunity to hear the nuts and bolts of innkeeping but also to talk to current innkeepers and others considering innkeeping. Talk with industry professionals who can help you with your business. Learn what this business is all about and how to be successful.

Whether you are thinking of selling this year, in three years, or in five years, it is never too early to plan your Exit Strategy. There are accounting and tax implications, as well as room rate and occupancy strategies, to running your business today that will be important at the time of selling. That is where Dana and Tori come in, providing the One Day In-Depth Workshop for Future Sellers. Our wealth of knowledge, and industry contacts can help you understand the selling process: how long might you expect to be on the market? How is the selling price determined? Preparing a clear P&L now so the books are ready for review when you sell; Preparing for showings, and more.

The buying, and selling, of an inn can seem like a challenging process. Tell us how we can help you.

"Buying or selling an inn can be a relatively long process. We don't just take part in a quick transaction, we establish relationships. The sale is not our goal. Your success is our goal. And our relationship doesn't end at the closing table" - The Maine Inn Team

More information about our seminars can be found here:

https://www.danamoos.com/seminars.html

Workshop dates will be posted soon - the schedule and locations are being fine tuned

Hot Off The Press! Introducing, The Maine Inn Team...

noreply@blogger.com (dana Moos) — Wed, 04 Dec 2019 03:06:00 +0000

Lodging broker Dana Moos has joined with former innkeeper and real estate agent Tori Baron to form the Maine Inn Team, with a focus on the hospitality industry. Between them, they have 20 years of innkeeping experience with backgrounds in marketing, sales and real estate. Dana has been selling inns throughout Maine since 2008. They’ll be offering seminars and workshops to help give buyers the tools they need to make their dream a reality and sellers the tools to plan their exit strategy.

Buying or selling an inn can be a relatively long process. We don't just take part in a quick transaction, we establish relationships. The sale is not our goal. Your success is our goal. And our relationship doesn't end at the closing table.

We are fully immersed in the hospitality industry and focus on selling Maine Inns, Bed & Breakfasts and commercial real estate with a hospitality component, including restaurants and event venues. We have been in your shoes, whether as buyer or seller. We offer years of cultivated contacts and resources for every aspect of your business, from acquisition to operations to preparing your inn for sale and beyond. Maine hospitality lenders, attorneys, tax accountants, hospitality association leaders, vendors, you name it.

Tori and her husband hired Dana to list their inn and in June 2019, they handed over the torch to new owners. Several months prior to closing on the inn, Dana shared thoughts with Tori about wanting to expand her business, as she considered the possibility of bringing on a new specialist/agent to work with as a team, one also experienced in the hospitality industry. Dana appreciated Tori's understanding of the industry, the financials and what operating today's inn entails in the ever changing landscape of the OTAs (online travel agencies) such as Booking.com, Expedia and AirBnB.

Both Dana and Tori are enthusiastic and passionate about tourism and hospitality and share the understanding that offering hospitable service is the foundation of building and maintaining client relationships. Between us we have 20 years of innkeeping experience. Hospitality is in our genes. You either have it or you have to work at it. We have it!

Soon after several planning meetings and discussions, The Maine Inn Team was formed.

To read more about Dana and Tori, check out The Maine Inn Team.

Tori Baron

The group photo was taken at the 2019 Hospitality Maine Summit at Sugarloaf in November. Left to right, that's me (Dana), Vanessa Santarelli, Your Maine Concierge, Tori Baron, Mark Osborne and Buzz Makarewicz from Topside Inn.

Aspiring Innkeepers: Interested in Controlling Your Own 401K? Here's How...

noreply@blogger.com (dana Moos) — Sat, 09 Nov 2019 13:53:00 +0000

What if you could invest your 401k funds into your own business? It could potentially make a big difference in what you can afford to buy if your only source of downpayment had been from the equity in your home.

If you're interested in learning more about this option, and we are seeing it become increasingly appealing for inn buyers, check out R.O.B.S (Rollover as a Business Startup) or what is also referred to a Self-Directed IRA.

One of the companies we and our clients work with is Guidant Financial. Read more about it on their website.

There are very strict compliance regulations when it comes to this type of corporate setup and it's important to work with an intermediary (such as Guidant) rather than an accountant to handle the process. The last thing anyone wants is to be faced with an IRS AUDIT!

Would YOU like to be in control of the success of your investment?

Update on Inn on the Wharf for Sale in Lubec

noreply@blogger.com (dana Moos) — Sat, 14 Sep 2019 19:20:00 +0000

If you love the idea of Inn on the Wharf but aren't looking for anything at this price point, there's an option to purchase the inn, restaurant and wharf business without the two homes and 6 vacant lots. The price for this offering would be $2,945,000.

Check out the full listing details on my website.

A LOT HAS HAPPENED IN THE LAST TWO MONTHS!

noreply@blogger.com (dana Moos) — Sat, 24 Aug 2019 13:59:00 +0000

I've been buried in new listing paperwork, but that is a good thing. More on the market from which buyers can choose.

Before I get into those listings, the lender who closed my last inn deal said commercial rates are hovering just under or around 4.5%. I was floored. I had been quoting 5%, then went up to 5.25%. Now he tells me I am safe in quoting 4.5%. The Fed didn't do anything with rates yesterday, and the lending market in Maine is still looking strong. 4.5% is historically low for commercial. It's a buyer's market!

So here's a fantastic list of new to the market inns of all types, sizes and locations:

Inn at Southwest in Southwest Harbor (on MDI) (7 rooms near Acadia National Park)
Inn on the Wharf in Lubec (23 rooms, restaurant, working wharf, whale watching cruises)
Inn at Park Spring in downtown Portland (6 rooms in the heart of town)
Five Gables Inn in East Boothbay (16 rooms perched on a hill with a beautiful view of Linekin Bay)
Captain Sawyer's Bed and Breakfast in Boothbay Harbor (9 rooms in town with a great view of town and the harbor)
Wilson Lake Inn in Wilton (30 unit hotel on beautiful Wilson Lake near Farmington)
Pier One (currently a vacation rental with 6 units, the owner lives in the large unit right on the water in Southwest Harbor)
Youngtown Inn and Restaurant in Lincolnville (6 guest rooms and a 55 seat restaurant just a few miles to Camden and a mile to Cellardoor Winery and Vineyard)

And we have a new price on Inn at Sunrise Point

Check out ALL LISTINGS on my website.

Understanding The Numbers

noreply@blogger.com (dana Moos) — Sun, 11 Aug 2019 16:27:00 +0000

I was looking at some numbers this morning (despite it being a Sunday, my mind just won't rest) and thought I'd share the general basis of determining value for hospitality properties. And this information is helpful to buyers and sellers.

Here you first see a cash flow scenario based on three fictitious properties to see if each has a cash flow that would work if trying to obtain financing. Then I look at the three properties if using the same cap rate (cap rate is essentially a way of looking at a return on investment) and we've been seeing around a 9% as of late (not considering reserves and management fee, but that's an appraisal topic for another blog post). The last scenario shows two properties with the same revenue but different expenses. And the bottom line is, if you control your expenses, you can increase your value. Of course if you can increase revenue and control expenses, that's the best scenario!

As a buyer, you can see how putting a bit more down can potentially buy you a lot more cash flow.

It is natural to try and minimize your taxable gain (as any business owner) by expensing more on your tax return (rather than putting certain expenses on a depreciation schedule), but in the end, the value of your inn when you go to sell is based primarily on your last three years of tax returns! Visit my website ("Understanding Value") for a link to a full spreadsheet in a pdf format.

For buyers, there really isn't enough information here about Property A, B or C to make a decision on what you'd want to buy. Factors such as location, lifestyle you choose (and at what pace/occupancy), staff or no staff, etc. could affect your decision. Some buyers want to own a B&B that can provide a comfortable pace, and not opt for a high performing one.

A lot goes into choosing the right property for you.

Change is Good!

noreply@blogger.com (dana Moos) — Sun, 07 Jul 2019 13:02:00 +0000

As of July 1, 2019, I am the Director of Lodging and Hospitality Brokerage for The Swan Agency Sotheby's International Realty.

I started my lodging brokerage career with Kim Swan in early 2008 when I obtained my Maine real estate license and listed my own inn for sale. Kim's "Lodging Specialists" team were a small group of lodging brokers who had previously owned and operated their own inns. We walked through a buyer and seller's shoes and truly understood the nuances of an inn deal.

Around the same time, the country began to go through a recession. We sold our inn in March 2009 when the Dow hit a recession low. We were fortunate.

For the next few years I sold 1, 2, maybe 3 inns. The economy was slow to bounce back. It was in 2012 I decided to join The B&B Team. I was excited about the idea of working with buyers and sellers nationwide as an inn consultant. The B&B Team is very strong in that regard. And the idea to work for a company that focuses 100% on what I sell was appealing. The Swan Agency Sotheby's International Realty sells both inns and residential. The decision for me wasn't easy because I really liked the people I worked with at Swan.

Fast forward to today and dozens of sales later. I have had a great run with The B&B Team. But I didn't end up working outside of Maine, because Maine kept me busy. And I realized that I truly didn't want to cover anywhere outside of Maine. The innkeeping world brought me to Maine in 2004 to buy an inn and my love of Maine has only grown since.

So after giving serious consideration of my career, I decided for the very opposite reason that I went to work with The B&B Team was going to bring me back to The Swan Agency. I wanted to work with an agency who devotes 100% of its efforts to the state I love so much. To the tourism and hospitality industry I know so well. To the state I love to call home. And Like The Swan Agency says "we work Maine, we play Maine, we are Maine'.

The opportunity for me to share my lodging brokerage expertise with other Swan Agency lodging brokers is appealing. To be the one to help others gain confidence and give them tools they might need. I guess it's why I like teaching at Stonewall Kitchen, to share what I know that has worked for me. I never saw myself as the teaching type, but I guess it was just in me and showed up at my doorstep one day. And we will be offering a variety of current innkeeper workshops as well as aspiring innkeeper seminars, but only in Maine, for those looking to buy in Maine. Stay tuned for announcements.

So I hope to continue to work deals with my former B&B Team colleagues and look forward to my new role at The Swan Agency Sotheby's International Realty.

Thank you all for your support!

dana moos, Realtor®

Director of Lodging and Hospitality Brokerage

Representing Buyers and Sellers Statewide Since 2008

Serving the Hospitality Industry, Selling the Hospitality Lifestyle

Dana Moos Consulting, LLC

danamoos.com, iPhone 207-266-5604

Cookbook Author, The Art of Breakfast

Guest Chef Cooking Instructor, Stonewall Kitchen Cooking School

FOUR more inns sold since my last blog post? YES! Don't miss out, things are moving...

noreply@blogger.com (dana Moos) — Wed, 19 Jun 2019 11:33:00 +0000

I haven't even had a chance to post what has sold since my last 'sold' blog post March 29th. 1802 House in Kennebunkport (buyer rep), Limerock Inn in Rockland (seller rep), Bar Harbor Cottages and Suites in Bar Harbor (buyer rep) and James Place Inn in Freeport (seller rep). All between April 30th and June 17th!

West End Inn

James Place Inn

1802 House Inn

The economy is strong, Maine tourism is strong, Maine's micro breweries, distilleries, arts and food scene are exploding, so what are you waiting for?

Contact me to talk about the first steps...

Allocation of Assets - Like a Hamburger???

noreply@blogger.com (dana Moos) — Wed, 15 May 2019 17:54:00 +0000

Mt Gay rum, Bacardi light rum, a splash of cranberry, splash of OJ, splash of coconut water, lime juice. Light and tropical!

So I used a cocktail for my analogy (because it's more appealing in a photo than a burger), but the original article referenced a hamburger.

The writer attended a presentation where the subject of allocation of assets in real estate was discussed.

When I read the piece, it made perfect sense to me, but I thought I'd try and further explain and simplify the topic.

The writer mentioned that while most people see a hamburger, he sees a beef patty, a bun, lettuce, tomato and cheese. The components that make up a good burger. "He doesn’t see a single piece of real estate, but numerous smaller assets that comprise the larger asset. The same can be said of a purchase price allocation (PPA)." So my analogy represents the layers and components that make up the finished cocktail.

What does this really mean?

When a business sale takes place (keep in mind, a B&B is a business within a piece of real estate), the purchase price has to be allocated among assets: land, building, FF&E (furniture, fixtures & equipment) and sometimes goodwill and non-competition agreement. The seller has been filing a corporate/business tax return using a certain basis from when they purchased, and depreciating against such basis over the years of ownership. When the property does transfer, the seller's taxable gain (or sometimes loss) is calculated on that basis. But the buyer and seller have to agree on an 'allocation of assets', since it affects the seller's gain and becomes the buyer's tax basis for future depreciation. Are you snoozing yet?

Here's an example:

Most Beautiful Inn B&B
Contract Price $1,000,000 broken down as such:

Land: $200,000 (tangible property/real estate)
Building: $650,000 (tangible property/real estate)
FF&E: $50,000 (tangible personal property)
Goodwill: $75,000 (intangible asset)
Non-Compete: $25,000 (intangible asset)

Total $1,000,000 contract price

And let's say this represents the allocation the seller (then buyer) agreed to as their tax basis when they purchased:

Land: $100,000 (tangible property/real estate)
Building: $450,000 (tangible property/real estate)
FF&E: $30,000 (tangible personal property)
Goodwill: $35,000 (intangible asset)
Non-Compete: $15,000 (intangible asset)

Total $630,000 (what they paid)

So what does this mean? Because land doesn't depreciate, and the building and FF&E depreciate at different rates, the gain when a sale takes place is calculated on the new allocation as it compares with the old, factoring in depreciation. The seller pays a tax on the gain. Further, the state of Maine has a one time state transfer tax (when a property is sold) that is paid at closing; it is calculated on the amount allocated to land and building only (real estate). The FF&E, though tangible assets, are taxed separately by personal property taxes. And the parties have to sign an IRS document that they agree to the allocation, so that they are held accountable should they decide to do any crazy accounting!

So as a seller, you will want to consider how a sale will affect you financially. Seek your accountant's advice on anticipating your gain. A lot more goes into this calculation than I'm describing here, but it's enough to help you understand the basics to talk to your accountant about. And as a buyer, you can talk to your accountant about how your sale down the road might be affected by the agreed upon allocation.

I have to smile. My father is an accountant and when I was young and would visit his office, I'd say "I could never be an accountant or crunch numbers like you do, Dad"...What is it that they say? Never say never?