To put this year's report into context, the residential real estate boom of the first five years of the millennium are over; the real estate and mortgage markets are in turmoil; prices in many areas of the country have plunged, and inventories are at all time highs. Therefore, it is very illustrative to note that the B&B market has tracked that trend similarly.
Nationally, inventory of inns for sale is up 26.3% over 2007. Average asking prices have also tracked residential trends with prices generally showing a decline, the exception being at the very high end. In the 5-10 room category, prices have declined 7.3% to $1.1M in the past year, while prices are down 8.7% to $1.7M in the 12-15 room category. There were also some individual records set in this study, with the lowest price nationally being in Texas ($160,000) for a bank-owned B&B, the most expensive bed & breakfast (no restaurant) at $8.5M in Florida, and the highest price inn of any kind recorded (a full service property in Pennsylvania) for $10.5M. The price range with the highest percentage of inns for sale was $750K - $1M, with 22.4% of the properties falling into that category.
Of particular note, twice as many inns as last year (43.6%) have been on the market more than a year, and 24.2% have found their way into the study for the past two years. This confirms what professionals in the industry have long said that marketing periods of 2-3 years for an inn are not unusual.
The B&B Team, Inc. was please to be the sole corporate sponsor of the 2008 Inns and Bed & Breakfasts For Sale Study. For a copy of the report, please contact us.