Reasons to open a B&B

[rv4life]

Hello,
My name is Shane Carman. For the last three years, I have been working to open a sixty room, limited service hotel where 50% of the net profit is donated to youth charities. Due to the extraordinary start up costs (7 million dollars), a consultant has suggested I launch a B&B, use the funds generated to open a small boutique hotel, and use the funds from the boutique hotel to open the original hotel I envision. While I like his plan, I seem to find so much negativity towards operating an inn. I understand it is long, hard work that never ends. I was hoping someone could tell me, what are some good reasons to operate an inn? I have heard from many that you do not own an inn for the money. Is it possible to do well?
Thank you for your time,
Shane Carman

 

[gillumhouse]

There are many reasons. IF in the right location, with the right marketing, and the sun, moon, and stars are aligned, you CAN make a living with a B & B. IF you work hard and have the right location. OR know how to turn wherever your location is into a "must go" place. I knew my 3 rooms would not support us but I hoped it would support the expenses of the house. It does - finally. IF I were not so civic minded, I probably would have made more - give free rooms to the City, the churches when they need a room.....
You MUST look at it as a business - altruism feels good, but it don't pay the bills!!! What you are talking about will take staff. The more staff the bigger the payroll. The bigger the payroll the less profit.
I do not get a salary. Some are able to pay themselves, I cannot. But I get to live in the city I want to live in. I get to do things for my city and the economy of my city because I have a B & B. I get to live in a big, beautiful house - not a mansion but I would not be comfortable in a mansion. The B & B pays for the house and the business expenses. And it made it possible for me to live in West Virginia - there is nothing better for this hillbilly.
And I get to bring people in to my State and my City who had no clue how wonderful a place it is. PLUS people pay me to come entertain me.

 

[Joey Camb]

Lots of positive reasons - DH and I work hard but we have always worked in hospitality and it doesn't bother us
(1) I am my own boss - no idiot undermining me, overbooking me or company policies that make no sense
(2) I live in a large property which eventually will be paid for - with pensions the way they are its an excellent investment
(3) meet really nice people - some are hard work but most are nice probably 99.99% are easy as pie
(4) excuse to go out for dinner - its a research trip
(5) how busy you are is a lot based on how hard you work on your marketing - you can see direct results
(6) location is incredibly important - where I am it is virtually busy all year round - this makes it a lot easier to keep staff which don't want to work 6 months on and 6 months off

 

[EmptyNest]

You won't ever make enough money to generate income for a small boutique hotel..sorry to say. And that is correct..the work NEVER ends.Especially if you do it all yourself.
Read through some past threads here. you will get an eyeful.

 

[Joey Camb]

You won't ever make enough money to generate income for a small boutique hotel..sorry to say. And that is correct..the work NEVER ends.Especially if you do it all yourself.
Read through some past threads here. you will get an eyeful..

I wouldn't say never - depends on a lot of things
(1) size of mortgage and interest rates
(2) location ie some places run as high as 95% due to location
(3) demand - are there events on a regular basis where you can charge a premium?
(4) state of the building to start with - ie of the 15 BB's here for sale you could literally walk in to 11 of them and make money
(5) skill at marketing or willingness to learn
(6) other forms of backing
(7) personal skills ie what can you do yourself to save money and a keen sense of when its best/fastest to hand it over to a professional ie I could wallpaper a room but it might take me 2 weeks to have time which isn't making me money plus not doing other money making activities such as marketing - my decorator can do it in 4, including painting and all the woodwork.
(8) potential for add on's for example one lady I know who is a BB coach lives in the champaign region of france does tours of the wineries etc could you do something similar - weddings, elopements etc - more work but more money
(9) careful choice of first property could be picked out with potential to expand ie we want to take on next door in a terrace so very easy - could you build an extension? take on a neighbouring property and so on.
It is doable - but only if you are very clever and carful and plan plan plan!

 

[JBloggs]

If you are looking at opening an inn to front the money toward a 60 room hotel, well that seems backwards. Most people retire from the corporate world to run an inn on their terms, investing themselves and their retirement on a small family owned B&B. They live there, they greet the guests and interact and are a small business owner. They do most things themselves at the inn from renovating, to cooking, to cleaning.

 

[Generic]

Do you know how to make a small fortune with a B&B? Start with a big fortune.

 

[JBloggs]

Do you know how to make a small fortune with a B&B? Start with a big fortune..

Do you know how to make a small fortune with a B&B? Start with a big fortune.

The reason I love you Johnny Sable.

 

[Generic]

Do you know how to make a small fortune with a B&B? Start with a big fortune..

Do you know how to make a small fortune with a B&B? Start with a big fortune.

The reason I love you Johnny Sable.

.

Do you know how to make a small fortune with a B&B? Start with a big fortune.

The reason I love you Johnny Sable.

As I sit here broke in a million dollar home. This week I just added 3 years on to the mortgage with just a signature!