Buying and running an inn or bed & breakfast in Vermont (or anywhere!) can be a tricky business.  While many people have a dream to run an inn in Vermont, the actuality of how to buy and run the inn can be elusive. 

The Vermont love affair so many of us share began for me as a child on my grandfather’s farm in Manchester, Vermont. I later attended  Middlebury College in the 70’s and went on to become innkeeper of the Swift House Inn, also in Middlebury, Vermont, from the late 80’s through the early 2000’s. Today, I am  now able to combine both my experience in hospitality  with my skills in real estate to connect  innkeepers with inns and bed and breakfasts across the state. 

 The first step in connecting is helping give honest and useful advice for people who want to explore their innkeeper dream.

Basic tips to identify the right type of property to begin turning the dream into reality:

•    Hone in on what you are looking for – there is a big difference between an inn, a bed & breakfast, a hotel, motel, or cabins.  
•    Decide on a management style – do you want to manage the property yourselves or do you want to hire others to do the hands-on work?
•    Are you looking for a career change or an entire lifestyle change?
•    Get familiar with Vermont’s landscape – the topography is wonderfully varied.  Consider if you want to be rural, urban, or somewhere in between - in the mountains, on a lake, a   river, a farm, or does village life suit you?
•    Do you wish to operate year-round or seasonally?
•    With these questions answered, you can better identify compatible properties.  Think about them for a while – how do they feel?
•    Then you are able to begin reviewing financial considerations including return on investment objectives, the sale of another property, qualification for mortgages, the possible need for Small Business Administration or Vermont Economic Development Authority support, or seller financing and lease purchase options.

During your search be honest with yourself about the aspects of inn keeping most important to you:

•    Be sure to pay attention to the owner’s quarters.  Do they meet your requirements for personal and family space?  
•    Inquire about other revenue streams and if you will need them.  Examples include a restaurant, retail, catering, yoga, massage, or an “outside” job.  
•    Get familiar with the location and the stream of business in this area to identify opportunities and challenges.  Is the property located in a destination area or a well traveled town?  Is there only weekend traffic or is there weekday business travel?  

•    Weigh the pros and cons of a seasonal (typically 6 months) operation.  For example, 6 months of hard work can mean substantial time off, however good seasonal employees are harder to find than year round support.  Will being open seasonally sustain the business and what could be other income generators?
•    Get a clear picture of the entire size of the property and what use is existing or provides potential.  
•    Become educated in the current rate and clientele structure – what needs to stay the same and what needs to change?
•    Know yourself and be honest – is this a hobby, a primary source of income, or a lifestyle change?
•    This will also be your home – will you enjoy living here?

Written By: Christine Fraioli

Christine Fraioli manages Vermont Lodging Properties which unites prospective buyers with Vermont inns, bed and breakfasts, hotels, homes, and other investment properties – www.vermontlodgingproperties.com

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