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Does the inns for sale and foreclosure auctions bother you?

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Posted on Sat, 03/13/2010 - 9:02pm
Mountain Inn
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I am wondering if the foreclosure auctions and the inn closings bothering anyone other than me?  I find it jolting to learn that places I have admired are in the midst of closings and foreclosures. In the 80's and 90's  and early 2000's, I visited and stayed in every bed and breakfast inn I possibly could since I knew that one day that is what I wanted to do.  I particularly enjoyed Virginia, New England, and the east coast.  Now that I get here as an actual innkeeper myself, so does the recession, along with news of closings and foreclosures that I find startling.  I have been a guest in some of the places facing foreclosure and don't want to see them in trouble. While some of the woes may be chalked up to new management"without a clue" that surely can't be the case in all situations.  We have been doing this 6 years and are committed to seeing this project through the recent economic challenges. But, we have a major rockslide blocking one of the main routes used by our guests. The slide happened in the fall near the beginning of our major season and is not expected to be corrected until late April or May.  This is an outside "threat" in the "SWOT" that we could not have foreseen.  We know it is affecting our business...our previous guests have told us via emails.

I am reminded of when I became suddenly single in the 80's, and along came AIDS.  i must work on my timing!

Just ranting, wondering, reflecting....

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This comment (67085) was in reply to the Original Topic on Mon, 03/15/2010 - 6:40am
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The Farmers Daughter
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It is somewhat disconcerting. There was an Inn at the Jersey Shore that I admired and in fact, TODAY there is an auction of all their stuff....right down to the linens. . . .

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This comment (67062) was in reply to the Original Topic on Sun, 03/14/2010 - 2:39pm
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gillumhouse
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With the inns that are run down my question is how did they get in that condition? Somewhere along the line an owner let things slide. Did the owner let it go and then sell to a pair of rose-colored glasses that did not have a thorough inspection who was then over-extended or did they just not bother to reinvest in it to keep it up? I can see how a blocked road or a caved in road (rain closed our end of the trail with a washout that did not get fixed for 2 years and that hurt us) can put the screws to an inn, but I question allowing it to run down to the point of shabby. We are 10 years in to the 21st century and things that were in the 80s, 90s, and even 2000 are either continually tweaked or tired creeps in.

Pride of place. I think that is what would make me keep my inn in shape.

As for the closings, thre are myriad reasons for that - and it is not always financial. Retirement, illness, death, burnout but I love my house, getting the unexpected gift of taking in a relative, parent, or children/grandchildren are all reasons an inn might close rather than sell. It may be a case of knowing there will be no buyer as a reason to close without selling.

My point is, do not always look at it as a sad thing. It may be a fond memory but time to move on to another phase. I know one lady who was an innkeeper for years who told me that she took it as GOD's answer to her prayer of whether to close or not - her house was struck by lightening when no guests were in-house and the firemen who had been called by the newspaper delivery person, woke her up and got her out without incident. She looks back with pleasure and no regret.

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This comment (67063) was in reply to comment 67062 on Sun, 03/14/2010 - 2:50pm
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Innkeeper To Go
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gillumhouse wrote:

My point is, do not always look at it as a sad thing. It may be a fond memory but time to move on to another phase. I know one lady who was an innkeeper for years who told me that she took it as GOD's answer to her prayer of whether to close or not - her house was struck by lightening when no guests were in-house and the firemen who had been called by the newspaper delivery person, woke her up and got her out without incident. She looks back with pleasure and no regret.

What an inspiring way to look at things.  Thanks, Kathleen, for reminding us that there's good in many of life's twists and changes.

Unfortunately when it's a foreclosure or a forced sale, the reason is always financial.  And it's never good.

 

 

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This comment (67066) was in reply to comment 67063 on Sun, 03/14/2010 - 3:20pm
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gillumhouse
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Unfortunately when it's a foreclosure or a forced sale, the reason is always financial.  And it's never good.

I cannot agree with it is never good. Sometimes it is the best thing that could be for the person who is in over their head but does not have the good sense to toss in the towel - so it is forced. It also now makes a property that may have been over-priced affordable to someone with the ability, grit, and stamina to go with their determination to make it a go.

What looks like the "end of the world" is often a "blessing in disguise".

This comment (67069) was in reply to comment 67066 on Sun, 03/14/2010 - 3:24pm
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Innkeeper To Go
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gillumhouse wrote:
.

What looks like the "end of the world" is often a "blessing in disguise".

Kathleen, as is so often the case, you are absolutely right.

 

 

This comment (67064) was in reply to comment 67063 on Sun, 03/14/2010 - 3:01pm
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catlady
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Yes we aren't talking here about just inns for sale..but foreclosures and auctions. And those are always for financial reasons which force the sale. Yes some is the fault of our economic climate, but others are because someone did not do due diligence in thinking they could run an inn. And, in a particular case I know...the owners had no clue what they were doing and thought it was just another business to run. And in the process they also ruined the lives of many other people...soooooo sadSad

This comment (67065) was in reply to comment 67064 on Sun, 03/14/2010 - 3:12pm
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Innkeeper To Go
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catlady wrote:

Yes we aren't talking here about just inns for sale..but foreclosures and auctions. And those are always for financial reasons which force the sale. Yes some is the fault of our economic climate, but others are because someone did not do due diligence in thinking they could run an inn. And, in a particular case I know...the owners had no clue what they were doing and thought it was just another business to run. And in the process they also ruined the lives of many other people...soooooo sadSad

Unfortunately, I too know a few inns in that category.  In fact, Mendocino County is somewhat littered right now with lives ruined by ineptitude and greed.

Of course, I also know some good ends that came out of some such messes.  One of the most delightful inns on the coast, in fact, is now back in the hands of its original owner.  She bought it back at auction after the idiot she sold it to ran it into the ground.  She's turned it back around and restored the inn to its glory days.  A real happy ending.

So in a way, even though forced sales always bring tragedy, they can also bring something good back to life.  We'll just have to hope for more in the latter category in the months to come.

 

 

This comment (67067) was in reply to comment 67065 on Sun, 03/14/2010 - 3:21pm
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catlady
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That's kind of what I was hoping might happen in the case I know. She sooooo deserves to have her inn back, but I know she could never afford to do it.

This comment (67068) was in reply to comment 67067 on Sun, 03/14/2010 - 3:23pm
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Innkeeper To Go
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You never know once it goes to auction.  Banks are still holding onto imaginary prices right now but that's going to start to loosen up in the next few months, at least in some markets.

 

 

This comment (67058) was in reply to the Original Topic on Sun, 03/14/2010 - 1:58pm
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Samster
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Yes, it does bother me too.  Especially when you see such great properties struggling with financial hardship.   Properties that are/were really jewels. 

We didn't close because of finances as our business was definitely on the upswing.  We closed more because we re-assessed our priorities about where we want to spend our time and energy.  Although, I have to say that the other established B&Bs here do not have the occupancy that they once did. 

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This comment (67056) was in reply to the Original Topic on Sun, 03/14/2010 - 12:08pm
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Innkeeper To Go
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Yes, Mountain Inn, it is very troubling.  To me, in fact, it's just heartbreaking.  Every single inn that ends in foreclosure or a forced sale is a tragedy.

And we're going to see a lot more of it over the next year.

 

 

This comment (67052) was in reply to the Original Topic on Sun, 03/14/2010 - 11:21am
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catlady
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yes it is a troubling situation, but also a sign of the times. If you are well positioned, this is a great opportunity for perhaps getting a good deal on a property. Things will come back around, but those getting into the business now need to be very savvy about it.

This comment (67045) was in reply to the Original Topic on Sun, 03/14/2010 - 9:44am
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white pine
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That rock slide is a kick in the pants.  My friend was talking about it the other day.  She took the major detour and complained she wished there was another way.  Is there?  Can you route guests via any back roads?  Maybe emphasizing not as fast but beautiful?  

The inns for sale disturbs us too.   We haven't bought ours yet, but haven't decided not too either;  we think there is opportunity in a down market.   Take comfort that you are open and they are closed.  You must be doing something right!  You will be on top when things turn around! 

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From the ancient Greek: "Against stupidity, the Gods themselves are impotent"

 

This comment (67039) was in reply to the Original Topic on Sun, 03/14/2010 - 9:00am
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Morticia
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Gomez and I are always joking that 'Timing is everything.' I almost cross stitched that phrase when we first started dating. We have missed everything.

Kids graduated from college the year before you could write off some college expenses. We sold 2 houses the year before the capital gains tax law was changed. We got married when there was still a 'marriage penalty' in effect for taxes. We met when he was still married and waited 13 years for our first date.

And, yes, I too was single during the 80's. And now I own a business that is seeing a marked change in how it has to operate.

I was too young for Woodstock. Oh, the list goes on!

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Spare me the perky.

 

This comment (67023) was in reply to the Original Topic on Sat, 03/13/2010 - 10:33pm
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gillumhouse
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Think of a way of wording it to direct people to the other route. Is there something along the othre way in that is interesting or noteworthy? I know it is a major problem but rather than keep it a problem make it lemonade.

Perception! The people in my city havesaid for as long as I have been here that we will never flourish until we have a decent road into town from the Interstate. I have been preaching to them for as long as I have had my B & B that it is a scenic country road that follows a meandering creek... and they are FINALLY starting to catch on. My guests think it is a lovely road (as long as they come in in the daylight) and the motorcycles love it!

Just as the walls came down at Jerico, our wall came tumbling down on Route #### just so you could experience ___________ as you come to our inn. Or create a "Hard Hat" special - we have the hard hats out because the rocks came down. Help us clear the way by taking your own souvenir rock home with you. We will clear the slide one rock at a time!

A city near where I used to live had the main drag business district torn up for a whole year while the State did a road project (the main drag was a major route) so the businesses did harf hat specials, hard hat prices... and they successfully rode (no pun intended) out what could have been a devastating business situation. Instead of looking at it as an obstacle, USE the slide. We don't want you to slide into third base so just be Coming 'round the Mountain to our wonderful inn. You get the drift. Play with it.

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