TromboneAl
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 30, 2006
- Messages
- 12,880
I'm trying to figure out the economics of a nearby Inn where I play piano. It was opened in 1922, and closed in 2004. The place had been very popular.
Someone bought it for $2.75 million in 2008, spent several million dollars fixing problems, and reopened it in 2010. Only half of the 104 rooms are currently unusable, and the main boiler is broken, so there's no central heating.
There's a nice lobby with a big fireplace (now gas), but the place is usually pretty deserted. There's a wedding there now and then. The bar is only open on Fridays and Saturdays, and there are usually only 20-30 patrons there. Rooms go for under $100 per night.
The owner seems clueless. During the recent jazz festival, I said "You must full due to the jazz festival." and he replied "Jazz Festival?" Another time my trio was playing in a ballroom, and the owner brought in a huge propane heater and turned it on (it sounded like a jet plane).
There is approximately zero marketing. Most people in town don't even know that it's been reopened. They had some reopening ceremonies, but with no publicity, few people attended.
So my question is, how does something like this work, financially? They can't be making much of a profit. Is the idea to keep it going, and then someday sell it for more than they've put into it? Are they trying to make a profit, but not doing a good job?
Is it possible this is some kind of money laundering operation?
Someone bought it for $2.75 million in 2008, spent several million dollars fixing problems, and reopened it in 2010. Only half of the 104 rooms are currently unusable, and the main boiler is broken, so there's no central heating.
There's a nice lobby with a big fireplace (now gas), but the place is usually pretty deserted. There's a wedding there now and then. The bar is only open on Fridays and Saturdays, and there are usually only 20-30 patrons there. Rooms go for under $100 per night.
The owner seems clueless. During the recent jazz festival, I said "You must full due to the jazz festival." and he replied "Jazz Festival?" Another time my trio was playing in a ballroom, and the owner brought in a huge propane heater and turned it on (it sounded like a jet plane).
There is approximately zero marketing. Most people in town don't even know that it's been reopened. They had some reopening ceremonies, but with no publicity, few people attended.
So my question is, how does something like this work, financially? They can't be making much of a profit. Is the idea to keep it going, and then someday sell it for more than they've put into it? Are they trying to make a profit, but not doing a good job?
Is it possible this is some kind of money laundering operation?