In the next 10 years, thousands of 8-20 room bed and breakfasts (B&B) will change hands. Mom/pop operators are aging and increasingly eager to sell.
B&Bs have a small buyer pool, typically other “mom & pops” wanting to buy pre-retirement. These buyers are sensitive to interest rates. This creates an opportunity for a sophisticated buyer/operator.
The B&Bs we purchase look like your “grandmother’s living room.” They are tech-backward, as most reservations come by phone. They are labor-intense, with owners cooking breakfast and housekeeping. Most owners live on-site. These B&Bs have deferred maintenance and are worn and tired.
One of the fastest growing segments in lodging are “boutique hotels,” 40 rooms or less, with a distinct story and unique design, in a prime location.