I recently got in touch with my uncle and aunt that have property in Puerto Rico. They both have houses there on prime property, the scene is unbelievable. My uncle is selling his house and my aunt is leasing hers. Both homes are huge. Perfect size for a bed and breakfast minus a few adjustments. Both homes are practically new. I would like to see if I could get some feedback on this idea because I'm really interested in pursuing this. I think it would be a lucrative venture because I know the area there. Thoughts please....Thank You
#2. "RE: Bed and Breakfast biz idea" In response to Reply # 1
This would be in Culebra, which is a very small island that is very secluded and very laid back. It has some of the most beautiful beaches in the world. It the past several years has been getting alot of tourism or more or less people looking to enjoy being away from the craziness of tourists. As far as my background, I currently work at a 5 start hotel in Jacksonville in the engineering department. I deal with residents day in and day out. I have also owned my own service business, so dealing with customers was daily.
#3. "RE: Bed and Breakfast biz idea" In response to Reply # 0
Check with the management of the property you are employed with now. I did a turnaround on a small niche property in Hollywood and we had the same problem most B&B's have. Too few rooms to spread advertising and promotion costs across. If and X by X ad in the Hotel Directory costs $2,000, it costs both my place with 40 rooms and the Holiday Inn across the street with 750, the same $2,000. So, it costs me $50/room, and the HI $2.50. While it's promotional costs that it's more apparent in, it does affect any fixed cost that applies to the property as a whole. Your purchase cost for the property, interest on the mortgage, taxes etc. all are distorted by the property size.
Ideally, given that it's relatives, you might go to them with your plans and see if they would both give you a short-term lease on the property...say 2yrs. to see if you can make it work. Many hotel/motel properties are leased by management companies that usually work on a fixed lease amount, or a profit split with the owner of the property. This isn't the only way, it's just one way and probably a way I would go about it. Good luck