Owning a boutique hotel
Investment Info:
Other buy & hold investment.
Purchase price: $2,300,000
We own and operate a boutique hotel downtown niantic. We have just really loved spending the time and energy to rehab the inside and outside and increase the overall revenue
What made you interested in investing in this type of deal?
We loved the location, and the upside the owners were in their late 70s and hadn't updated the hotel in a few decades. So we felt that investing the time and energy into bringing the property up to a higher standard would increase the bottom line, and become a better part of a vibrant community
How did you find this deal and how did you negotiate it?
We found the deal on the mls, and sat down with the owners to find the perfect mix of owner financing, and quick payoff allowed us to get the deal at a fantastic price
How did you finance this deal?
We put 35% down and the owners agreed to finance the rest interest only with a payoff schedule of two years
How did you add value to the deal?
upgrading rooms, changing old tvs, fixtures windows and adding exterior space for geusts to enjoy themselves
What was the outcome?
we doubled the amount of bookings and income year one
Lessons learned? Challenges?
Hotels do require alot more hands on but being a part of the community makes a huge difference