Harpswell Inn

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Harpswell)Inn)
Harpswell Inn
at Lookout Point
Harpswell, Maine
Inn Consultants and Brokers Since 1993
35)Western)Avenue,)Suite)5)
Kennebunk,)Maine)040403)
Tel)207.266.5604)
[email protected])
www.bbteam.com)
©"Copyright"2012"The"B&B"Team,"Inc.""
The)B&B)Team®)
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Harpswell)Inn)
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Table!of!Contents"
Broker!Disclaimer!/!Non6Disclosure!
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Property!Description!
Highlights!
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Page!4!
Overview!
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Page!5!
Property!Tour! !
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Financial!Highlights!
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Page!7!
Property!Facts! !
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Area!Location! !
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Access!and!Visibility!
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Market!Position!and!Competition!
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Market!Potential!
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Page!12!
Market!Analysis!
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Investment!Considerations!
Additional!Sources!of!Information!
Other!Documents!and!Enclosures!
Deed!
Supporting!Financial!Statements!and!Worksheets!
Miscellaneous!Documents!
Inventory!!
Disclosures!
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Harpswell)Inn)
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Broker/Consultant.Disclaimer.
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The!B&B!Team®!and!its!representatives!believe!that!the!information!contained!herein!is!accurate!and!has!
been!obtained!from!sources!it!believes!reliable,!including!the!owners!of!the!property!and!business,!but!it!
has! not! been! independently! verified,! is! not! guaranteed! and! is! submitted! subject! to! errors,! omissions,!
change!of!price,!prior!sale,!or!withdrawal!without!notice.!There!may!be!additional!information!available!to!
a!purchaser!from!other!sources.!Purchasers!should!exercise!whatever!due!diligence!they!feel!is!necessary!
and!should!not!rely!upon!the!information!contained!herein.!Neither!The!B&B!Team!nor!its!representatives!
warrant! the! suitability! of! the! property! for! any! particular! purpose! and! do! not! assure! the! success! of! any!
future!or!contemplated!business!venture.!If!you!have!received!this!from!anyone!other!than!The!B&B!Team!
or!someone!authorized!by!The!B&B!Team,!its!use!is!strictly!prohibited.!
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Non4Disclosure.of.Material.
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This! buyer’s! offering! report! contains! information! of! a! sensitive! nature.! The! owners! of! the! property! and!
business!herein!described!do!not!want!this!information!shared!with!anyone!other!than!your!legal!and!tax!
advisors;! therefore,! this! information! is! released! on! the! understanding! that! it! will! not! be! reproduced! or!
disseminated!without!written!permission!of!the!Broker!or!Consultant!and!only!after!agreeing,!in!writing,!to!
maintain!the!confidentiality!of!the!information.!
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The)B&B)Team®)
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Harpswell)Inn)
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Property(Description)
Harpswell)Inn)
Harpswell,)Maine)
Property.Highlights.
• square!footage:!10,450!
• lot!size:!2.53!acres!
• 12!bedrooms,!12!baths!plus!2!half!baths!in!total!!
• several!gas!fireplaces!
• 1!wood!burning!fireplace!in!great!room!
• modest!owner's!quarters!with!1!bedroom1,!1!bath,!living,!room!with!gas!stove!with!access!to!
the!inn’s!commercial!kitchen.!Private!entrance.!Two!car!garage.!!
• private!water/sewer!
• paved!parking!lot!
• siding:!vinyl/wood!
• flooring:!hardwood,!carpet,!vinyl,!tile!
• heating:!direct!vent!propane!and!oil!fired!!
• paved!onsite!parking!
• zoned!commercial/fishing!!
• Taxes:!$8,415!
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Harpswell)Inn)
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Property.Overview.
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Harpswell!Inn!at!108!Lookout!Point!was!built!in!1761!and!sits!on!over!2.5!acres!down!at!the!end!of!a!quiet!
road!and!offers!8!very!spacious!guest!rooms,!3!large!guest!suites!(some!with!kitchens,!two!of!them!are!two!
story!units)!and!a!50!seat!function!room!with!141!feet!of!water!frontage.!A!large!wrap!porch!with!skylights!
offers!guests!a!perfect!spot!to!relax!and!unwind.!
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You!step!into!a!bright,!window!clad!"great!room"!with!a!stone!wall!and!wood!burning!fireplace,!patterns!of!
plaid,!flowers!and!Toile!that!all!work!beautifully!together.!There!are!two!large!dining!rooms!painted!a!
beautiful!shade!of!red.!Off!the!dining!room!is!the!"Middle!Bay"!Function!Room!for!weddings,!bridal!
showers,!reunions,!corporate!meetings,!etc.!The!inn!has!a!restaurant!license.!The!Harpswell!Inn!is!an!
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Harpswell)Inn)
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historical!landmark!Bed!&!Breakfast!located!on!one!of!Maine’s!famous!“finger”!peninsulas.!The!setting!
provides!a!stunning!view!of!Maine’s!natural!beauty,!including!the!magnificent!sunsets!over!Middle!Bay!and!
the!quiet!cove!below,!which!serves!as!a!harbor!for!lobster!boats.!Guests!of!the!Inn!awake!to!the!smell!of!
salt!air!mingled!with!the!aroma!of!freshly!brewed!coffee!and!a!hearty!breakfast.!
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Strong!lodging!business!in!place!with!room!to!grow;!growing!event!business!with!new!50!seat!event!room;!
commercial!restaurant!equipment!in!place!for!restaurant!potential!as!additional!revenue!stream.!Harpswell!
Inn!is!poised!to!be!an!all!inclusive!destination!inn.!!
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This!property!would!also!make!an!incredible!single!family!estate!or!family!compound!for!pure!residential!
enjoyment.!
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The!Summer!House!–!built!in!1761,!now!the!Harpswell!Inn,!was!originally!the!old!cookhouse!of!famed!
Lookout!Point!Shipyard,!which!made!sturdy!vessels!that!sailed!the!seven!seas.!Harpswell!has!been!called!a!
nursery!for!those!who!sailed!the!seas,!but!there!were!stalwart!men!who!stayed!home!and!fashioned!with!
prideful!skill!the!many!stately!schooners!that!carried!Harpswell!men!to!fame!in!those!faraway!places.!One!
such!shipyard!thrived!at!the!sandy!point!at!the!Lookout.!The!yard!flourished!before,!during!and!after!the!
Civil!War,!and!for!about!twenty!years!schooners!and!brigs!ranging!from!20!to!200!tons!were!built!and!
launched!there.!Sometimes!there!were!as!many!as!four!on!the!ways!at!once.!There!is!one!remaining!
symbol!of!the!flourishing!shipyard!which,!during!the!summer!months!at!least,!works!as!of!old.!That!is!the!
old!bell!a6top!Harpswell!Inn.!In!the!1860s!the!bell!summoned!the!hungry!shipwrights!to!their!meals.!
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Property.Tour.
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Page)6)
Harpswell)Inn)
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Property(Statistics)
Financial.Highlights.
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Price:! !
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$1,900,000!
Gross!Revenue!(12!months!ending!1263162011):!!
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$236,078!
Revenue!per!room:!
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$19,673!
Gross!Room!Revenue:! !
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$186,324!
Gross!Food!&!Beverage!Revenue:!
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$49,000!
Adjusted!Net!Operating!Income:!
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$98,447!
2011!Occupancy!Rate,!rooms:! !
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27%!
Average!Daily!Rate!(ADR):!
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$155.64!
Revenue!per!Available!Room!(RevPAR):! !
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$42.86!
Room!Rates:!
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$1356259!
Gross!Revenue!Multiplier!(GRM):!
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8.05!
Capitalization!Rate:!
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19.29! !
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*!2011!revenue!was!based!on!12!rooms.!For!a!good!part!of!2012,!one!of!the!rooms!was!enlarged!and!
another!lost!due!to!fire!life!safety!requirements!so!the!revenue!per!room!and!RevPAR!will!change!for!2012,!
reflecting!11!rooms!for!part!of!2012.!
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Harpswell)Inn)
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Property.Facts.
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Owner:!!
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Anne!and!Richard!Moseley!
Address:!
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108!Lookout!Point!Rd.,!Harpswell,!ME!04079!
Legal!Description:!
Harpswell,!Maine,!Cumberland!County,!Deed!Book!
22482,!Page!10!
Land:! !
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.2.53!acres!and!all!improvements!thereon!
Zoning:!!
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Comercial/Fishing!
Designated!Use:!
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B&B!
Construction:! !
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Frame!w/vinyl!and!wood!siding!
Roof:! !
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Composite!
Windows:!
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Thermal!pane!replacement!
HVAC!:! !
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Hot!water!baseboard!(fuel!oil),!propane!fireplaces!!
Hot!Water:!
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Electric!and!oil,!off!heating!system!
Telephone!System:!
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N/A!
TV:!
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Cable!in!all!rooms!
Internet:!
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Wireless!throughout!
Water:! !
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Private!
Sewer:! !
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Private!
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Page)8)
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Harpswell)Inn)
Market"Analysis)
Area.Location.
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Harpswell!is!a!town!in!Cumberland!County,!Maine,!United!States,!within!Casco!Bay!in!the!Gulf!of!Maine.!
The!population!was!4,740!at!the!2010!census.!Harpswell!is!composed!of!land!contiguous!with!the!rest!of!
Cumberland!County,!called!Harpswell!Neck,!as!well!as!several!large!and!small!islands:!Sebascodegan!Island!
(locally!known!as!Great!Island),!Orr's!Island,!and!Bailey!Island.!Harpswell!is!part!of!the!Portland–South!
Portland–Biddeford,!Maine!Metropolitan!Statistical!Area.
The!Town!of!Harpswell,!located!on!Casco!Bay,!Is!a!short!scenic!ride!from!Portland,!Freeport,!Bath!and!
Boothbay!Maine.!Harpswell!is!the!unspoiled!coastal!community!that!is!accessible!by!way!of!the!beautiful!
Bowdoin!College!town!of!Brunswick.!Harpswell!is!a!unique!coastal!community!which!recently!celebrated!its!
250th!birthday.!For!over!100!years!it!has!been!a!mecca!for!vacationers!seeking!a!saltwater!environment,!a!
serene!way!of!life,!and!an!abundance!of!natural!beauty.!Its!216!miles!of!coastline!consists!of!Harpswell!
Neck,!the!three!large!islands!of!Sebascodegan!(Great!Island),!Orr’s,!and!Bailey,!which!are!connected!by!
bridges,!the!most!notable!being!The!Cribstone!Bridge,!and!a!scattering!of!over!200!smaller!islands!
accessible!only!by!boat.!With!some!of!the!few!remaining!working!harbors!on!the!Maine!coast,!it!offers!an!
authenticity!of!which!Mainers!are!proud.!
Harpswell!has!it!all!!Light!houses,!Ocean!views,!walking!trails,!beaches,!Historical!sites,!working!lobster!
harbors!and!marinas!all!in!the!Mid!Coast!Maine!region.!
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Harpswell)Inn)
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Access.and.Visibility.
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Harpswell!Inn!is!located!in!the!Southern!Mid6Coast!area,!anchored!by!larger!towns!such!as!Brunswick!and!!
Bath!with!Bowdoin!College!nearby.!Two!turns!down!from!Brunswick!on!Route!1!and!you!arrive!at!the!quiet!
spot!at!Lookout!Point,!but!yet!remain!just!8!miles!to!the!myriad!of!shops!and!restaurants!that!Brunswick!
has!to!offer.!
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Harpswell)Inn)
Market.Position.and.Competition.
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Tourism!is!the!number!one!industry!in!the!state!so!the!lodging!choices!in!the!southern!mid6coast!area!are!
wide6ranging,!from!small!inns!and!bed!and!breakfasts!to!large!inns!and!a!few!chain!hotels.!The!Harpswell!!
Inn!stands!out!as!one!of!the!idyllic,!postcard!Maine!lodging!choices!in!the!area.!The!personal!touches!
provided!by!a!well6run!bed!and!breakfast!with!fine!lodging!accommodations!in!a!desirable!part!of!Maine!
are!well!positioned!for!success!and!growth.!The!Harpswell!Inn!is!that!property.!With!the!restaurant!and!
events!capability,!new!owners!could!make!Harpswell!Inn!THE!destination!of!the!area.!Guests!wouldn’t!have!
to!leave!to!enjoy!a!nice!evening!of!waterfront!dining.!The!waterfront!at!the!inn!could!be!enhanced!with!a!
dock!and!boat!use!for!guests!staying!at!the!inn.!
There!are!a!couple!handfuls!of!B&B’s!between!Brunswick,!Harpswell!,!Bailey’s!Island,!Georgetown!and!Bath!
and!just!a!few!larger!inns!and!small!chain!hotels.!
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Market.Potential.
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When!looking!at!any!business,!determining!market!potential!is!at!times!an!exercise!in!creative!imagination.!!
A!study!of!the!revenue!patterns!for!the!past!years!at!the!Harpswell!Inn!demonstrates!that!it!has!enjoyed!a!
steady!business!growth.!!While!the!inn!has!sustained!this!income!and!small!growth,!continued!upgrades!
and!enhanced!amenities!could!be!added!by!future!innkeepers.!The!events!and!restaurant!side!of!the!
business!could!be!greatly!enhanced!which!would!dramatically!increase!revenue.!
With!a!continued!disciplined!approach!to!the!business,!judicious!expenditures!for!continued!room!
upgrades,!controlled!expenses!and!creative!marketing,!the!Harpswell!Inn!has!the!prospect!of!generating!a!
very!comfortable!ROI!with!a!wonderful!business!and!lifestyle!for!new!owners.!
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Investment.Considerations.
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The!process!for!assessing!and!valuing!the!business!is!multi6layered.!The!first!step!is!to!look!at!an!actual!
profit!and!loss!statement.!
The!second!step!is!to!consider!fixed!and!variable!costs.!How!can!you!manage!things!more!affordably?!How!
will!you!increase!revenue!without!increasing!expenses.!What!can!you!do!more!efficiently?!Can!you!market!
more!aggressively?!And!based!on!your!cash!down,!how!will!your!net!operating!income!work!for!you?!
The!most!important!part!of!the!investment!analysis!is!the!debt!coverage!ratio.!This!is!important!in!assessing!
whether!a!lender!would!consider!the!cash!flow!to!be!adequate!to!support!a!loan.!They!are!generally!
looking!for!a!number!of!at!least!1.25!to!1.3!or!in!some!cases,!even!higher.!
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Page)11)
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Harpswell)Inn)
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Additional.Sources.of.Information.
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The!Inn’s!website:!www.harpswellinn.com!
Official!town!website:!www.harspwell.maine.gov!
Harpswell!Business!Association!website:!!www.harpswellmaine.org!
Southern!Mid6Coast!Chamber!of!Commerce:!www.midcoastmaine.com!
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Other.Documents.and.Enclosures.
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Deed!
Supporting!Financial!Statements!
Inventory!of!Personal!Property!
Seller’s!Property!Disclosures!
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