Financial Review

18 replies [Last post]
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Joined:
12/30/2012

I just got this from the place we are looking at. It is a foreclosed property (interesting back story - the banker involved in now in jail for bad loan).

   Source                    Nights       Revenue               ADR

Walk-In Nights         1199         $13,460.44            $15.18

Phone Nights           1731         $34,157.74            $19.02

Web Nights                118           $9,034.29            $75.29

This is only for 1 May 2014 to 23 Oct 2014. No advertising. Bank using a one-man manger to keep the place active and safe. No meals.

The math is not working for the me with the report (it is a hotel software printed report).

They sold 3058 night during a period that did not have that many nights. There are only 3650 nights available in a year for this Inn (10 rooms * 365 days open)

 

Please explain this.

 

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Joined:
12/30/2012

Thank bank has taken care of the property. They hired a management firm to clean up the place and keep it going. Other than that the bank is only trying to sell it.

Property is good. Built in 2008, all high quality stuff. It was just that the President of the bank and the owners were in cahoots and got some bad loans against the property. Bank Pres. and one owner now in jail.

The rooms used to be $100, $115 & $130 a night with no breakfast but there is a full service kitchen and they used to operate a good restaurant. Local high school held a few proms here (small school 100 kids total in all four grades). And they averaged a wedding a month when it was being operated properly.

But, YES, I am not going to pursue it. it was "Good from far, Far from good."

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Joined:
12/30/2012

Got it figured out!!!!   This page of the report reflects both part of the business (Lodge and Campground).  We asked for separate reports and their system can't do it on this on page.  The data I need is about 20 pages deeper.

 

Double Room           65       $83.69        $4,770.54

Queen Room           45       $89.10        $2,695.00

King Room             107       $72.84       $6,992.83

Total Nights Sold   217      $66.63        $14458.37

 

  So, 217 / 1760 = 12.33% Occupancy for the 5 3/4 month period reported.   The rest of the income is from the 42 spot campground. It take into account discount for long term stays (several all summer) and 5 that are wintering there to work on a major construction job).

This is all without any active marketing being done by the bank. The only thing is word of mouth, reviews posted and leaving the website active.

 

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Joined:
06/24/2008

Why would they ave. less for the King room.  NO SENSE here either. 

The bank is obviously not trying too hard.  They know how hard it is going to be to get financing especially with these poor figures. 

What were the finances like BEFORE the bank took it over? 

OnTheShore's picture
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08/28/2011

Maybe the bank (current owner) will be willing to provide the financing themselves?

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Offline
Joined:
05/22/2008

Maybe the bank (current owner) will be willing to provide the financing themselves?

You are kidding right???? 

Offline
Joined:
05/22/2008

You still interested???? why??room rates are bad!

is this in a good location? if youndont have funds to purchase outright good luck trying to find financing.

sounds like you will need to make major investments renovating and updates to make this go.

sorry i would be running awaycrying

Aussie Innkeeper's picture
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01/16/2010

maybe they're renting by the hour. wink

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Offline
Joined:
10/07/2008

Walk in nights for $15.18

I guess you need to share a little bit more about this, it can't be a bed and breakfast.  You got us all roped into it and now we need more info! Smiling

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Generic's picture
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Joined:
02/24/2011

Something else is wrong. $13460.44/1199=$11.23

Walk-In Nights         1199         $13,460.44            $15.18(S/B$11.23)

Phone Nights           1731         $34,157.74            $19.02(S/B$19.73)

Web Nights                118           $9,034.29            $75.29(S/B$76.56)

For 10 rooms that's 3048 nights, when a full year would be 3652 nights. Or in other words if this was a full year (and it's not represented to be) that would mean an occupancy rate of 83.4% and the only place like that with that kind of occupancy better be in New York City. 

Horse hockey!

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Offline
Joined:
06/24/2008

Have you been there? 

It looks to me by the info that it is run as a hostel not a B&B.  (Jon S. is right)

It doesn't add up even with that as a mind set. 

It is hard to change the perception to the degree needed to make this place stand out.  IMHO 

Generic's picture
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Joined:
02/24/2011

ThuderingWind wrote:

   Source                    Nights       Revenue               ADR

Walk-In Nights         1199         $13,460.44            $15.18
Phone Nights           1731         $34,157.74            $19.02
Web Nights                118           $9,034.29            $75.29

Something is wrong here. Are they renting out by the bed in a dorm? ADR of $15.18? Who the hell charges $15 a night except for a youth hostel and/or a crack hotel?

Joey Camb's picture
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Joined:
04/02/2010

unless they have missed a $0 out somewhere! ie 150.18

 

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Generic's picture
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02/24/2011

You think you get $75 a night from those booking on the web and $15 a night for those walking in the front door? Something is VERY FISHY.

http://youtu.be/TL7xrE9EYd4

muirford's picture
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Joined:
05/22/2008

Someone had their hand in the till - and 'guests' paid cash.

 

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Arks's picture
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05/22/2010

ThuderingWind wrote:

   Source                    Nights       Revenue               ADR

Walk-In Nights         1199         $13,460.44            $15.18

Phone Nights           1731         $34,157.74            $19.02

Web Nights                118           $9,034.29            $75.29

Lock that door, disconnect that phone, and push those web nights!

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Breakfast Diva's picture
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Joined:
05/26/2009

It makes absolutely no sense.

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Joined:
05/22/2008

I have no idea...can you ask them? they cant do math..another

reason for foreclosure?

OnTheShore's picture
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Joined:
08/28/2011

Could they be counting person-nights rather than room-nights?

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