InnSpiredINN News
Properties Being Moved,
Lending Starting To Thaw

So here we are at the beginning of July! Those of us in the South are the full business swing of the season. Two more of our properties have been sold to new owners with one more scheduled for closing soon.

The Madison Inn in Black Mountain, a property that adjusted to current market trends before the economy faltered. This property increased sales during 2009 by dropping prices and lowering costs. By doing this the new owners and their lending institution had a sense of security in their new adventure. Congratulations to Scott & Bobby (the sellers) and Rhea & Jason, the new innkeepers. InnSpiredinns stayed with the sale for 9 months getting through the new regulations and rules to make this sale happen. We found the lenders ready to invest, the insurance company to cover this unique property, the attorneys and CPA to set up the corporation for the buyers and help with the 1031 exchange for the sellers, saving tax money for everyone!

The Killarney House Inn in Hendersonville is being converted back to a private residence. InnSpiredinns unique marketing of our listings put this property in front of buyers that otherwise would have missed this opportunity. We wish the buyers much happiness in their new home, and the sellers, Marc and Myong, good luck and prosperity in their future.

The owners of the Herren House contacted InnSpiredinns after a family issue forced their return to Chicago. Thinking outside the box we listed the property as a lease/purchase opportunity. After working with the current owners, the prospective lessee and the bank we helped broker a deal that makes everyone happy. The Herren House continues on as it has for decades. Again, our contacts and marketing made this deal a reality in a matter of a few short weeks.

The message here is creativity and hard work make your properties profitable and attractive to buyers. InnSpiredinns uses that same approach to make your new goals a reality. We modify our services for your special circumstances and budget.

MARKET TRENDS

“Organic” OUT! “Local” IN! (Repeat)

We thought this article was important enough to repeat, so here it is again if you missed it last time!

Did you know that there are over 40 “Appalachian” farmers markets in Western North Carolina alone? We found some very interesting information on one of our many consulting assignments recently. And this impacts EVERY B&B/INN!  Whether you serve a nice breakfast and social to your guests, or you have a restaurant or full service special events facility, the products you use speaks volumes about your quality.

We are blessed to have farmers/growers in the area that are so committed and devoted to their trade. They love their community and the god given resources that North Carolina has to offer. They put in a tremendous effort to grow and offer the very best products they can produce, and more often than not these products are not just some of the best items you can find in NC, but in the entire Southeast!

Web sites to find where they are!

www.localharvest.org

www.piedmont-farmersmarket.com

www.ces.ncsu.edu/content/shoplocally

www.local.com

INNKEEPER NEWS

 Guest Booking Online! A great website is a good start, but beyond the site itself it is becoming more critical for consumers to be able to book their travel online. This means your website must include this feature to fully take advantage of the consumer trend toward Internet reservations and purchasing. Due to very real security concerns, consumers will not simply email you their credit card number. They expect a secure transaction system where they can check availability, reserve and confirm their travel plans. The easiest way for operators to start accepting bookings online is to use an Internet-based property management system or activity booking engine. These systems automate and simplify the booking process for both consumer and operator. With very easily understood interfaces, staff can be quickly trained to use these systems as reservations come in. RezNexus is our suggested system to our consulting clients.

FEATURED B&Bs/INNs FOR SALE

Saltaire House, Duck, NC- This special events property that caters to weddings and receptions will have net sales over $280,000 in 2010! And, considering these sales are mostly fee related, their cash flow averages over 70%!

Herren House, Waynesville, NC - This fabulous B&B has a boutique restaurant and a country cottage feel. Located one block off of Main Street, it continues to have strong sales and profits.

Unique historic downtown Hendersonville NC Inn - Claddagh Inn - has been welcoming visitors for 100+ years.

Mimosa Inn, Tryon, NC- Built in 1903, has been a landmark and social gathering place for more than a century.

INN FOCUS

July 2010

INNKEEPING TIPS

Rhonda and Mike Horton

Challenges (and Suggestions!) During These Difficult Economic Times! Part II

• Reduce Your Rates!
• We know you have a beautiful property and services that demand high rates, but travelers are looking more and more for value. So give it to them with rates that will still turn a nice profit for you but give them the value they are looking for.
• By adding a room or two at a reduced rate you get the travelers attention! You don’t have to have every room at that reduced rate, and the lower end rate rooms don’t always have to be available.
• If you don’t want to reduce your rates, then create packages that give them that little extra value for the same price.
• Marketing needs to go up during tough times not cut back! One of the more successful B&B’s in the Western part of NC has increased their marketing exposure and continues to see sales growth.
• Small parties and special events can bring in food sales or if you use a caterer a percentage of what they are charging. You should also be charging a hosting fee as well.
• Decrease your insurance costs by bidding it out every year. This is a high dollar line item that needs to be managed.
• Refresh your web site. If you have not made any changes recently, it might be getting stale. Add a few new pictures.
• Facebook, Twitter, Blogs all help get you more exposure.
• VRBO- Put your property on this popular web site so people that are planning family reunions or couples traveling together have access to your place.
• Pet friendly guest rooms are becoming more and more popular. Pick out a room that will “handle” pets easily. Put a special bedspread on the bed that is easily cleaned. You can charge 20-30% more for the room, and normally guests who travels with their pets are well behaved.
• Have a consultant come in with fresh eyes to help you refresh your property, review your expenses and make suggestions and help you improve your P&L.

NORTH CAROLINA ACCOLADES

North Carolina has been recognized for its outstanding business climate and quality of life. Here are some recent accolades:

 2010 Accolades

2010 CiCi Awards: A North Carolina economic development project won a Community Impact award -- Talecris Biotherapeutics in Clayton, Trade and Industry Development magazine, March/April 2010

2009 Accolades

No. 1 Best Business Climate eight of the last nine years, Site Selection magazine, November 2009

Top place in the U.S. to locate data centers, report, Tishman Technologies, October 2009

No. 2 Most Competitive State, Site Selection, May 2009

No. 2 Best State for Business by CEOs, Chief Executive magazine, February 2009

No. 3 Pro-Business State, Pollina Corporate Real Estate, June 2009

No. 5, Forbes Best States for Business, September, 2009

No. 8, Project on Emerging Nanotechnologies, Top States for Nanotechnology, August, 2009 (Raleigh listed No. 4 for Top Nano Metros)

No. 9, America's Top States for Business study, CNBC, July 2009 (ranked No. 2 for Workforce)

Three N.C. cities on the Next Cities list of 60 U.S. Hotspots for Young, Talented Workers: No. 12 Charlotte under "Super Cities"; No. 9 Durham under "Midsize Magnets"; No. 6 Cary under "Mighty Micros," June 2009 

RECIPES