Inn at Craig Place $1,500,000

How about owning the #1 B&B in San Antonio, TX where both the winters and the people are warm and friendly. The Inn enjoys year-round strong occupancy and has grown revenue year over year since 2007, with additional opportunities not yet tapped. 60% of the purchase price is real estate. San Antonio zip code 78212 (Monte Vista) real estate values, according to Sperling's Best Places, have appreciated 32%, 11% and 6% over the past 10 years, 5 years and 12 months, respectively. The property is zoned commercial and could be used for other business purposes. Pro-forma EBITDA return on investment of 9%-12%. Current room revenue of 55% of total with 45% of revenue attributed to weddings capable of growing to 55% of revenue in weddings and 45% in rooms, all dependent on your appetite for growth. The infrastructure is already in place to handle the additional revenue opportunities. Investors will be happy to know that pro-forma EBITDA are inclusive of 3 new hires (Innkeeper, Assistant Innkeeper/ Wedding Coordinator and a chef).

And most importantly, you don’t have to renovate and build a B&B business from scratch. This turnkey business comes with strong advanced bookings for both rooms and weddings, so you will start right out generating revenue. In addition to the increasing revenue from the current five rooms (all with private baths) the inn hosts intimate weddings, which currently boosts revenue by an additional 90%. There are also opportunities for additional wedding revenue, with no additional investment required.

This turnkey sale includes our customer base, reservation management system, furniture, fixtures, linens, cookware, serve-ware, flatware, wedding inventory, new web site (completed in Nov. 2013), business logo, all imprinted inventory (champagne glasses, wine glasses, mugs, robes), and goodwill. Owners are willing to mentor the new owners, if requested, as they plan to remain in San Antonio near their children/grandchildren.

And the best part for the investor? A separate owners or innkeepers living quarters! The beautiful, newly renovated carriage house has a private garage and private laundry facility. Enjoy the privacy you deserve in the up-to-date, modern 1500 sq. foot carriage house with corner Jacuzzi tub/shower, beamed cathedral ceiling in the master bedroom, designer kitchen with granite countertops, and a separate living/dining area with patio.

The inn and carriage house sit on 1/3 acre. The main house and carriage house are in pristine condition. Arches lead into a beautiful, “secret” garden on the east side of the main house, the site of the outdoor weddings. A gated area leads into the east end of the carriage house and up to the private balcony. The property boasts towering trees and lush landscaping with a newly paved drive that curves around the back to the lighted parking area. Originally constructed with elements that reflect the Victorian era including towering 11 foot ceilings in every room which add to the majestic feel. The original fireplaces have inlaid tile, each room with its own design.

Our customer base includes both out-of-town guests looking for a romantic getaway or destination wedding as well as many in-town guests looking for a short “staycation” and/or a small, intimate wedding. This popular, historic 1891 inn, with five guest rooms (and a sixth opening soon) is situated in an upscale neighborhood in the heart of San Antonio, centrally located a mile north of the famous River Walk and close to many other of the city’s oldest attractions. While the economy remains strong in Texas, San Antonio is booming and growing in both new business and population while tourists/visitors continue to flood into the center of this vibrant city. New attractions, restaurants, bike lanes and recreational facilities are added each year. All in all, these demographics make downtown San Antonio the perfect place to own a luxury B&B.

Our room revenues, Average Daily Rate ("ADR") and Revenue Per Available Room Night (“RevPar”) are currently at their highest levels since 2007. Our Events business (weddings) increased almost four-fold during the period of 2008 through 2011. As we have grown the business, we have learned to operate “smarter” and constantly modify our offerings not only in our rooms but also with our wedding packages. As a result of these strategic initiatives, we have been the #1 Bed & Breakfast in San Antonio for the past 5 years, as per TripAdvisor.

As we have continued to grow the business year over year, all-in-all, our EBITDA has held steady as a result of us continuing to invest excess cash flow back into the business. Fluctuations from one year to the next can be pinpointed to one or two very specific management decisions. Further into this document, we detail all of the improvements that we have made over the past seven years. Some of these investments were capitalizable and some were expensed (note that some investments could have been capitalized but were expensed for tax purposes, thus reducing our operating income.)

For example, after the tremendous year over year increases in our wedding business from 2008 through 2011, we reached a point where we had to hire additional staff. Two additional housekeeping staff members added in early 2012. This increased our annual expenses by approximately $19,000. Also in 2012, we had both buildings on the property painted at a cost of $16,000. The $35,000 of additional expenses directly correlates to the change in EBITDA from 2011 to 2012. In the 4th quarter of 2012, we also re-evaluated our wedding package offerings and eliminated some, downsized some and increased the prices of others.

Our hosted weddings decreased by 43 in 2013, 20 of which were our least expensive “It Takes Two” package, which we eliminated. However, 2013 event revenue only decreased by $17,000 versus 2012. In addition, we invested approximately $3,000 in new event furnishings to add a new line of offerings.

For 2014 and beyond, we have reached a point in our operations where we are comfortable with the number of events that we are hosting and know that should an unforeseen expense come up, we have the option to add more weddings. This can be accomplished by either hosting a large event on consecutive days or on a Sunday. Also, we are now booking fewer weddings but at a greater value that we have in the past so the actual decrease in events is offset by the greater revenue generated from them, resulting in minimal EBITDA impact. In addition, with our increase in “ADR”, we can now block out certain rooms nights to minimize the workload resulting from consecutive nights with guests staying at the Inn.

Details

  • Built in 1891
  • Historic Registry
  • 15 years as B&B
  • Last renovation in 2014
  • For Sale By Owner
  • 6 Guest Rooms
  • 6 Guest Bathrooms
  • Lot size: 0.33 acres
  • 6 Parking Spots
  • Has owner's quarters
  • $1,500,000
  • For Sale By Owner
  • 58% annual. occ. rate
  • $165.00 avg daily rate
  • $450,000 gross revenue
  • $202,000 room revenue

Listing Agent

Kelly and Gregg Alba
117 West Craig Place
San Antonio, 78212

Phone: +1-877-427-2447
email: stay@craigplace.com


Location

117 West Craig Place San Antonio, TX 78212

Photos (click to enlarge)

Street view of the Inn
Bathroom in the owners'/innkeepers' quarters of the carriage house. Renovated in 2012. Black granite counter and dark wood cabinets. Heated towel rack. Reflected in the mirror is the corner whirlpool tub/shower surround. Shower has double heads. Kitchen in the innkeeper's quarters of the carriage house.KraftMaid cream cabinets with glazing and granite countertops. New stainless steel Kitchen Aid dishwasher. Black and stainless oven.
Inn kitchen (main guest house). View of the commercial storage area for serving ware and ingredients. Kitchen has large island with prep sink, tumbled marble countertops and JENN-AIR large 4 burner gas cooktop plus gas grill/griddle. Inn kitchen (main house). 11 ft. ceilings.  Traditional cherry cabinets, tumbled marble counters and island/breakfast bar, KitchenAid Oven, beautifully built in where old wood burning stove used to be, large Jenn-Air gas cooktop with built in gas grill/griddle. Prep sink and large double sink with new faucet. Two refrigerators.
Inn office - original mosaic tile floor, large windows on two sides, French doors on other two sides, filing cabinet, desk and wing back chairs. Exterior of the carriage house (owners'/innkeepers' quarters). Left end is the new addition built in 2008. Master bedroom upstairs, living/dining area downstairs. Door leads into kitchen area. Spiral staircase up to second floor bedrooms and bathroom. On the right, the garage door, second living area above garage and private balcony on far right. Top window is the loft bedroom with walk-in shower and built in desk/cabinets/large closet with built in shelves.

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