ducktrap motel

Ducktrap)Motel)
!
Ducktrap motel
Lincolnville, 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"2013"The"B&B"Team,"Inc.""
The)B&B)Team®)
!
Page)1)
Ducktrap)Motel)
!
Table!of!Contents"
Broker!Disclaimer!/!Non6Disclosure!
!
!
!
!
!
!
!
Page!3!
Property(Description(
Property!Highlights!
!
!
!
!
!
!
!
!
!
Page!4!
Overview!
!
!
!
!
!
!
!
!
!
!
Page!5!
Property!Tour! !
!
!
!
!
!
!
!
!
!
Page!667!
Financial!Highlights!
!
!
!
!
!
!
!
!
!
Page!8!
Property!Facts! !
!
!
!
!
!
!
!
!
!
Page!9!
!
!
!
!
!
!
!
!
!
Page!10!
History!of!Lincolnville! !
!
!
!
!
!
!
!
!
Page!11!
Weather!
!
!
!
!
!
!
!
!
!
Page!12613!
!
!
!
!
!
!
!
!
!
Page!13!
Market!Position!and!Competition!
!
!
!
!
!
!
!
Page!13!
Market!Potential!
!
!
!
!
!
!
!
!
Page!14!
!
!
!
!
!
!
!
!
Page!14!
!
!
!
!
!
!
Page!14!
Other(Documents(and(Attachments( (
(
(
(
(
(
Page!14!
Market(Analysis(
Area!Location! !
!
Access!and!Visibility!
!
Investment!Considerations!
Additional(Sources(of(Information!
(
Deed!
Supporting!Financial!Statements!and!Worksheets!
Inventory!of!Personal!Property!
Seller’s!Property!Disclosures!
Photos!of!owner’s!quarters!
!
!
The)B&B)Team®)
!
!
Page)2)
Ducktrap)Motel)
!
!
Broker/Consultant.Disclaimer.
!
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.!
!
!
Non4Disclosure.of.Material.
!
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.!
!
The)B&B)Team®)
!
!
Page)3)
Ducktrap)Motel)
!
)
Property(Description)
Ducktrap)Motel)in)Lincolnville,)Maine)
Property.Highlights.
• square!footage:!!5,700!
• lot!size:!4.3!acres!
• 13!guest!rooms,!(10!guest!rooms,!1!single!cottage,!1!duplex!cottage)!plus!one!newly!renovated!laundry!cottage!
which!could!be!converted!to!a!guest!cottage!or!office!cottage!
• !Built!in!1950!
• !beautiful!mature!landscaping!with!a!lovely!manicured!lawn,!tall!trees!and!plenty!of!area!for!outdoor!entertaining!
• !owner’s!house!with!fireplace!in!living!room,!spacious!kitchen,!3!bedrooms,!1!bath,!basement!with!storage!and!
laundry,!attached!1!car!garage!
• well/septic!
• large!paved!parking!area!and!drive!lanes!
• siding:!clapboard!&!wood!w/vinyl!shutters!
• flooring:!vinyl,!tile,!carpet!
• air!conditioning:!window!units!
• heating:!hot!water!baseboard!
• water!heater:!off!heating!system!
• zoning:!Limited!Residential!
• Taxes:!$8,470!
.
!
!
The)B&B)Team®)
!
Page)4)
Ducktrap)Motel)
!
Property.Overview.
!
Situated!between!Camden!and!Lincolnville!Beach!with!a!view!of!Penobscot!Bay,!this!sprawling!property!
invites!you!to!sit!back!and!relax.!The!expansive!lawn!is!the!perfect!place!for!guests!to!begin!their!day!with!a!
cup!of!steaming!coffee!or!to!relax!in!the!afternoon!with!a!refreshing!drink!and!a!good!book.!The!outdoor!
space!could!be!enhanced!for!more!outdoor!living!and!recreation.!
Ducktrap!Motel!is!a!comfortable,!immaculate!and!affordable!option!for!guests!looking!not!to!spend!a!great!
deal!on!lodging.!!
!
!
!
!
The)B&B)Team®)
!
!
!
Page)5)
Ducktrap)Motel)
!
.
Property.Tour.
!
!
!
!
!
The)B&B)Team®)
!
Page)6)
Ducktrap)Motel)
!
!
!
.
!
The)B&B)Team®)
!
Page)7)
Ducktrap)Motel)
!
!
!
Property(Statistics)
Financial.Highlights.
!
Price:! !
!
!
!
!
!
!
!
!
!
$525,000!
2012!Gross!Revenue:! !
!
!
!
!
!
!
!
provided!with!NDA!
Revenue!per!room:! !
!
!
!
!
!
!
!
provided!with!NDA!
Gross!Room!Revenue:!!
!
!
!
!
!
!
!
provided!with!NDA!
Gross!Food!&!Beverage!Revenue:!
!
!
!
!
!
!
$0!
Adjusted!Net!Operating!Income:!
!
!
!
!
!
!
provided!with!NDA!
Occupancy!Rate,!seasonal!(Jan6Oct):! !
!
!
!
!
!
provided!with!NDA!
Occupancy!Rate,!annualized:! !
!
!
!
!
!
!
provided!with!NDA!
Average!Daily!Rate!(ADR):!
!
!
!
!
!
!
provided!with!NDA!
Revenue!per!Available!Room!(RevPAR):!
!
!
!
!
!
provided!with!NDA!
Room!Rates:!
!
!
!
!
!
!
$65!6!$125!
!
!
!
!
!
!
provided!with!NDA!
!
!
Gross!Revenue!Multiplier!(GRM):!
The)B&B)Team®)
!
Page)8)
Ducktrap)Motel)
!
!
Property.Facts.
!
Owner:!
!
!
!
!
!
Richard!and!Elaine!Knight!
Address:!
!
!
!
!
!
12!Whitney!Road,!Lincolnville,!ME!04849!
Legal!Description:!
Book!2576,!page!12!of!Waldo!County!Registry!of!Deeds!
Land:! !
!
!
!
!
!
4.3!acres!
Zoning:!
!
!
!
!
!
Limited!Residential!
Designated!Use:!
!
!
!
!
Hotel/Motel!
Construction:! !
!
!
!
!
Wood!frame!
Siding:!!
!
!
!
!
!
Wood/Clapboard,!vinyl!shutters!
Roof:! !
!
!
!
!
!
Composition!shingle!
Windows:!
Thermal!pane!replacement!
HVAC!:!
Hot!water!baseboard,!AC!window!units!
Hot!Water:!
!
!
!
!
!
Off!heating!system!
Internet:!
!
!
!
!
!
Wireless!throughout!
Water:!!
!
!
!
!
!
Private!
Sewer:!!
!
!
!
!
!
Private!
The)B&B)Team®)
!
!
Page)9)
Ducktrap)Motel)
!
!
Market'Analysis)
Area.Location.
!
Camden,!Rockland,!Lincolnville!Beach!&!Beyond!!
Located!just!7!miles!north!of!Camden,!on!Atlantic!Highway!(US!Route!1)!in!Maine’s!Midcoast!area,!is!the!
town!of!Lincolnville!Beach.!Although!it!will!never!rival!the!name!recognition!of!the!more!famous!neighbor,!
Lincolnville!Beach!is!within!minutes!of!all!of!Camden’s!attractions!while!offering!quite!a!few!of!its!own!on!a!
road!less!traveled.!Beflast!is!just!14!miles!north!of!Ducktrap!Motel!and!offers!a!nice!mix!of!local!artisans!and!
harbor!activities.!Rockland!and!its!wonderful!museums!and!lighthouse!are!just!14!miles!south!of!Ducktrap.!
Spend!a!few!days,!or!a!week,!in!Lincolnville!and!you!will!truly!experience!why!Maine!is!such!a!special!place.!
!
!
The)B&B)Team®)
!
!
Page)10)
Ducktrap)Motel)
!
History.of.Lincolnville.
!
Lincolnville!forms!the!south6eastern!point!of!Waldo!County,!being!about!7!miles!in!length!and!4!in!width.!It!
lies!on!the!western!shore!of!Penobscot!Bay,!12!miles!south!of!Belfast,!and!is!on!the!stageline!from!Bangor!
to!Rockland.!Lincoln!was!formed!of!the!plantations!of!Ducktrap!and!Canaan.!It!is!bounded!by!Northport!and!
Penobscot!Bay!on!the!north6east!and!east,!Searsmont!and!Belmont!on!the!north6west,!Hope!on!the!south6
west,!and!Camden!on!the!south.!!
!
Nearly!the!entire!border!of!the!town!is!covered!by!hills!or!ponds.!The!highest!is!Peaked!Mountain,!standing!
on!the!eastern!line!and!partly!on!Northport,!which!has!an!altitude!of!about!800!feet.!The!other!most!
notable!eminence!is!Muddy!Mountain,!lying!at!the!extreme!western!part!of!the!town.!Pitcher!Pond!extends!
along!the!north6eastern!line,!lying!partly!in!Northport.!Its!outlet,!Ducktrap!River,!is!the!principal!stream!in!
the!town.!Andrew's!Pond!lies!near!the!centre!of!the!town,!and!Fletcher!Pond!in!the!western!part.!The!
closely6connected!ponds,!named!Lincoinville,!Canaan!and!Horton,!in!the!south6western!part,!cover!a!large!
area!in!this!town!and!in!Camden.!Ducktrap!Stream!has!a!pond!surface!of!about!2,800!acres,!and!the!faIl!on!
the!stream!is!300!feet!in!3!miles.!!
!
The!principal!power!is!about!20!rods!above!Ducktrap!bridge,!and!40!rods!from!high6water!mark.!A!canal!
could!be!made!with!a!small!outlay!to!conduct!the!water!below!the!bridge,!where!factories!could!be!built!
close!upon!tide6water,!where!vessels!could!lie!beside!them.!This!river,!with!feasible!improvements,!could!
be!made!to!increase!its!power!to!be!equal!to!carrying!75,000!spindles.!McCobb!Stream,!Gould,!Kendal!and!
Andrew's!Ponds!each!furnish!some!power;!and!each!of!the!three!last!have!a!mill.!!
!
The!town!has!six!lumber!mills,!a!grist!mill,!a!tannery,!several!lime!and!granite!quarries,!the!last!material!
being!of!a!superior!quality.!There!arc!also!manufactured!here!in!small!quantities!tinware,!boots!and!shoes!
and!carriages.!!
!
The!surface!of!the!town!is!generally!broken,!rocky,!buggy!and!mountainous.!The!villages!are!Lincolnville!
Centre!and!The!Beach,!the!latter!the!same!as!Lincolnville!post6office.!The!nearest!railroad!connections!are!
at!Belfast!and!Rockland,!each!about!12!miles!distant.!There!is!connection!eastward!and!with!Boston!by!
steamers.!
!
Lincolnville!was!incorporated!June!23,!1802.!John!Studley!and!a!Mr.!Wilson!commenced!a!residence!in!tile!
town!in!1774,!and!were!the!first!settlers.!!
!
The)B&B)Team®)
!
Page)11)
Ducktrap)Motel)
!
The.Weather.
!
!
!
The)B&B)Team®)
!
Page)12)
Ducktrap)Motel)
!
!
!
Access.and.Visibility.
!
Lincolnville!sits!in!the!middle!of!the!“mid6coast”,!about!halfway!between!Portland!and!Bar!Harbor/Acadia!
National!Park.!It’s!a!very!popular!stopover!destination!to!and!from!Kennebunkport,!Portland!and!Acadia.!
The!property’s!location!right!along!scenic!Route!1!makes!for!easy!access.!
!
Market.Position.and.Competition.
!
Tourism!is!the!number!one!industry!in!the!state!so!the!lodging!choices!in!this!area!are!wide6ranging,!from!
small!inns!and!bed!and!breakfasts!to!a!few!larger!motels!and!hotels.!Ducktrap!Motel!is!one!of!about!12!
lodging!properties!in!Lincolnville!and!receives!very!good!reviews!on!TripAdvisor!with!good!positioning.!
!
The)B&B)Team®)
!
Page)13)
Ducktrap)Motel)
!
Market.Potential.
!
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!few!years!at!Ducktrap!Motel!demonstrates!that!it!has!enjoyed!
a!steady!business,!despite!a!dip!in!the!economy!and!tourism!a!few!years!back.!!
With!a!continued!disciplined!approach!to!the!business,!judicious!expenditures!for!continued!room!
upgrades,!enhancement!of!outdoor!living!space,!controlled!expenses,!creative!and!social!media!marketing,!
Ducktrap!Motel!has!the!prospect!of!generating!a!comfortable!ROI!with!a!wonderful!business!and!lifestyle!
for!new!owners.!!
.
Investment.Considerations.
!
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?!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.!With!the!appropriate!down!payment,!the!numbers!work.!
!
Additional.Sources.of.Information.
!
The!inn’s!website:!http://ducktrapmotel.com!
Link!to!Additional!Property!Photos:!!http://goo.gl/Y4v2fc!
Other.Documents.Available.
Deed!
Supporting!Financial!Statements!
Inventory!of!Personal!Property!
Seller’s!Property!Disclosures!
Site!Plan!
The)B&B)Team®)
!
Page)14)