Parker's Motel

Background Information

Originally built in the 1950's, Parker's Motel has undergone sizeable renovations in the 1970's and 1980's including multiple additions to the original structure. The property consists of three buildings housing thirty units, an office, a laundry room, game room, garage and workshop, employee apartment, and indoor spa and sauna. Of the thirty units, twenty-four are single room units (two with kitchenettes), three two bedroom units with full kitchens, and two three bedroom units with full kitchens as well. There is also an owner's apartment consisting of four bedrooms, full kitchen, living/dining area, and two full baths. Five of the units have propane fueled fireplaces and many have porches or balconies with panoramic views of the White Mountains. The buildings are heated with a propane fired forced hot water system, and plentiful hot water for the units is available via multiple propane fired hot water heaters. The outdoor pool is open from Memorial Day through Labor Day.

Since 2005, when the current owners purchased the property, the majority of rooms have had the bathrooms renovated, electrical upgraded, a heat monitoring system installed, air conditioning units replaced, and bedding and soft goods replaced. The current owners have continued to maintain and upgrade the property on a consistent basis which has positively impacted the overall guest experience, sixty percent of whom are repeat guests.

Parker's Motel averages fifty percent occupancy on an annual basis, with occupancy rates in the seventy percent range in July and August; sixty percent in September and October; fifty percent in January, February, and March; forty percent in December; and 30% in April, May, June, and November.

The motel boasts a 3000 person mailing list, reservation system, and on-line booking capabilities through Travelocity. Because it does not feature dining facilities on property, Parker's Motel offers a meal plan through Woodward's Resort for its guests requiring that amenity.

The Industry

The lodging industry in the Lincoln-Woodstock area is viable, as the two towns sit in the heart of New Hampshire's White Mountain region, a popular tourist destination. The valley is marketed through the Lincoln-Woodstock Chamber of Commerce as "Two Little Towns, One Big Adventure". When the visitors are here during peak season (June through October and December through March, roughly), the motel is very busy weekends and school vacation periods. During the shoulder seasons and winter midweek periods, the motel is quieter, but still has some repeat base business to warrant keeping it open.

Generally speaking, tourism destinations all over the country did find numbers down in 2009 as compared to previous years; however, Parker's Motel has enjoyed a steady increase in revenues over the full three year period that the current owners have operated the property. There is no reason to believe that with continued, aggressive marketing and attention to controlling operating expenses, positive growth will continue throughout 2009. Although official numbers for the winter of 2009 season have not been finalized at this time, the Seller is representing that snowmobile visitor traffic alone this winter positively impacted numbers overall for the season.

For further information on the state of the lodging industry in Lincoln-Woodstock and New Hampshire, contact the following entities:

Lincoln-Woodstock Chamber of Commerce
P.O. Box 358
Kancamagus Highway
Lincoln, NH 03251
603-745-6621
www.lincolnwoodstock.com

New Hampshire Lodging and Restaurant Association
P.O. Box 1175
14 Dixon Avenue, Suite 208
Concord, NH 03302
603-228-9585
www.nhlra.com

Location

Parker's Motel is located at the gateway to Franconia Notch State Park on Route 3 in Lincoln, New Hampshire. It's location is only a ten minute drive from Loon and Cannon Mountains, two of the more popular ski resorts in New England. Parker's Motel is also located adjacent to Corridor 11, the most popular north-south snowmobile trail in New Hampshire.

Summer attractions such as Whales Tale Water Park, Clark's Trading Post, The Flume Gorge, Lost River, Hobo Railroad, North Country Center for the Arts, Kancamagus Scenic Highway, and Echo Lake are all within a ten minute drive, as are hundreds of miles of hiking trails. Within a half hour drive are dozens of golf courses, waterfalls, and swimming holes.

The Lincoln-Woodstock and Franconia Notch regions feature many unique restaurants, specialty shops, pubs, and historic sites. Within an hour's drive families can visit Story Land, Santa's Village, Polar Caves, Mount Washington Auto Road and Cog Railway, and all the other attractions, both natural and man-made, which have created this popular tourist destination.

Physical Condition

The building was built in the 1950's but has been almost completely renovated in the 1970's and 1980's and updated annually as needed since. The overall quality of the buildings is very good to excellent, both internally and externally, as the structure, interiors, and F,F, & E are on an aggressive maintenance and replacement schedule.

Reason for Selling & Other Facts

The owners are looking to relocate further south to be closer to their families. They feel that they have taken Parker's Motel to where they had envisioned it to be over the last few years and that new ownership will be able to incorporate all that they have done thus far and continue positive growth to the next level. The owners feel that this business opportunity is a perfect fit for an entrepreneurial young family or couple looking to be hands-on owner operators of a successful and fulfilling business.

The current owners are willing to stay on and train for two weeks after the transfer of the business at no charge.

Inventory of Furniture, Fixtures & Equipment

Full inventory is available upon request.

Inventory

All room amenities, paper goods, cleaning supplies, and consumables required to operate the facility are included in the sales price of the business.

Not Included in the Sale

Pickup Truck with Plow
Personal property
Cash on hand
Business bank accounts
Accounts Receivable
Accounts Payable
Outstanding loans
Any other security deposits and prepaid expenses

Hours of Operation/Employees

The motel is open 8:00am to 10:30pm, 7 days a week. There are three full-time employees who are paid hourly.

Size of Facility

There is approximately 10,000 square feet of finished space combined in the motel's three buildings.

Annual Sales Volume

Available upon completing a Confidentiality Agreement.

Gross Profit Margin

Available upon completing a Confidentiality Agreement.

Expenses

Available upon completing a Confidentiality Agreement.

2006-2008 Profit and Loss Statements

Available upon completing a Confidentiality Agreement.

Ways to Improve the Business

For new owners with new ideas and endless energy, Parker's Motel will continue to thrive and its potential is limitless. The current owners believe that by increasing the amount of available units with kitchens and kitchenettes; more family friendly space and bedding configurations; and taking advantage of the beautiful views surrounding the motel, a greater market share can be derived from visitors who have historically stayed in condominiums. The price point will be much less for theses accommodations at Parker's Motel than they will be at the condominium resorts, yet the experience will be just as positive.

Recommended Listing Price (RLP)

The RLP justification for this business is as follows:

The business has Gross Revenues of:	*
The business has a Net Profit of:	*
The business has Sellers Discretionary Earnings of:	*
Furniture, Fixtures and Equipment:	$225,000
Real Estate:	$1,000,000
	TOTAL RLP: $1,350,000

*Available upon completing a Confidentiality Agreement.

Ownership Transfer Specifications

The current owners are asking $1,450,000 total for the business and real estate.

They may be willing to provide secondary financing terms to a qualified buyer.

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