Alaska's Capital Inn Juneau Alaska For Sale
Alaskas Capital Inn Bed and Breakfast. Need a lifestyle change and want to escape to paradise?
Maybe work for yourself and enjoy a different way forward? Catch a fresh salmon or some crab for dinner? You can make it happen and here is your opportunity. We are retiring after almost 19 years in the local lodging business operating two bed & breakfasts, and new owners can step in and inherit a seasoned and profitable year round enterprise.
There are lots of resources for information about Alaska. We enjoy a healthy, stable economy, with low unemployment and no State income taxes. Each year every Alaskan receives a distribution from the Permanent Fund Dividend Program. There is no mortgage crisis here.
A wide variety of recreational opportunities are available for all outdoor enthusiasts. Clean air and a pristine environment. A wealth of opportunity exists for those seeking adventure. North to the future! Southeast Alaska is an exciting and great place to live with a fun lifestyle. Juneau is a very active community with lots of friendly people and something for everyone. Check it out.
We purchased the house in the summer of 1998 with the sole intention of converting it into a historic bed and breakfast inn. Three years of reconstruction followed with the business first opening in the summer of 2001 with four rental rooms. We over saw the reconstruction personally and everything was redone and completed with the guest experience in mind. Two more rooms were added by the summer of 2002. The fourth floor suite was finished during the summer of 2004. No short cuts in construction, nor were there any corners cut in any of the reconstruction done over the years. This house will easily stand another 100 hundred years.
The house was awarded the Mayor’s Award of Excellence in 2001 in recognition of the significant remodel efforts within the historic district and conforming to the period of the houses original construction (1906). The Inn is surrounded by mature landscaping and gardens that provide an oasis type setting in our downtown location. Some plants and trees are historic in that they were planted by the Olds family 100 years ago. Inn guests today dine on raspberries from plants originally planted on the property. We are first and foremost a bed and breakfast; however, given our prime location, and the seasonal nature of the tourist business here, we have chosen to operate and focus our business as if there were actually three different and distinct seasons.
This is a year round full time business. New owners may have something entirely else in mind that works for them. This is what works for us and our lifestyle. Any new owner will want to do things their way and what works for them.
We market to all the top B&B travel websites. Listed highly on Trip Advisor and rated the best in the Capital City by a number of on line guides. The Inn has been in business long enough that we are now seeing repeat guests traveling to visit the State again. Advance reservations are a significant revenue source during the winter. New owners can expect a cash transfer of deposits at the time of sale.
We are Fodor’s Choice in the Capital City and listed as the best place to stay with Frommer’s Travel Guides. We have been featured on the Home and Garden TV Network and also on the Travel Channel, a subsidiary of the Discovery Network. In August 2012, we were featured on Fox News, in their program, “Juneau In 5” as the bed & breakfast for accommodations in the Capital. This was huge exposure for us as the Fox website gets 1.5 million hits per month. We are one half-block from the State Capitol. Our location affords us a unique opportunity to provide lodging during the winter when the Alaska Legislature meets annually in session.
We also host receptions, private parties and small gatherings for a variety of organizations. This time period is very busy and provides an excellent source of winter time revenue that other local B&B’s don’t have because of their locations outside the downtown core area. For any new potential owner, one issue that may come up for them is, “how to increase revenues”. While we have fine-tuned the current operations to suit our particular needs and lifestyle, there are several things that could be undertaken by a new owner to increase the bottom line. 1. The easiest first step would be open up for business during October, November and December and the first part of January. Do some targeted marketing to take advantage of who is traveling during that time period. Business, winter recreational, regional shopping, and government travelers would be first considerations. Juneau is the local hub for all the surrounding island communities, so lots of people come to town for a variety of activities.
We have several suggestions in this area. 2. During this same time period the Inn makes a perfect back drop for holiday parties and similar type events. Catered functions, dinner parties, birthdays and anniversary celebrations, meeting space for off-site business meetings, and special themed events are some of the many possibilities. 3. The Legislature may approve a return to a 120 day session (currently 90 days) beginning in 2017 after this year’s election and reapportionment. This will add another month of winter rental revenue and also increase food revenue during that same period. To our current operation, that will add an additional $12-$14 thousand to our annual revenue. Typically the Second Session always runs past the 90 day mark. 4. Cannabis tourism is here. Given Colorado’s success, everyone anticipates more tourists this summer. Get in early as this will be a big boost. An increase of $100.00 per night per room would generate an additional $70,000 per year on top of the annual revenue. Also, this is commercial property and the zoning will permit a recreational shop, cafe, testing facility and other businesses. 5. Large wedding events and planning services are another potential source of revenue.
Currently we are appointed wedding commissioners and plan and perform small intimate events. However there is a market here for the exotic or big time events, taking advantage of glaciers and wilderness experiences in planning and setting large events into motion. Local wedding planners charge between $65 and $85 per hour for services rendered. 6.
Expansion of the Inn to add rooms would certainly be another area for consideration, although there would be some additional build out costs initially, over the short term, profitable. With that idea in mind, we started moving forward to add four additional guest cabins in the (2012) summer, with our goal of getting all the underground utilities in and the foundations ready for construction. These new cabins will add significantly to the bottom line. Each cabin would bring in a minimum of $27,000 annually, more with a "green" atmosphere. The installation of the new cabin waste lines and a complete new line for the Inn was completed in early November 2012 at a cost of almost $20,000. The appraiser in January indicated an increase in value of $100,000 per cabin. Another option would be to construct a private residence in the backyard and less cabins. Either way it is time to expand the business as we are getting many more requests for rooms than we can currently handle. 7. Increased tour sales to guests.
Currently we do not package tours or have any “vacation packages” to sell to potential guests when they make their initial contact with us. We do not have a “high pressure” approach to selling our rooms, however we are aware of other innkeepers here locally who have success with this approach to the guest experience. It is a personal choice and is really up to the new owner.
Concierge services will add more revenue during the prime summer tourist season. 8. A group package tour where the entire Inn is rented by a group traveling together as a unit for a week is another venue. Typically these are high end customers who have planned and pre-sold daily tour activities that keep them occupied with a schedule of events. Every week a new group arrives for their stay, so the schedule is very predictable. These could also be themed stays that align the food and activities to the clients for that particular group. Recently, (September) we were approached by ENTRÉE ALASKA about becoming one of their destination partners for the 2013 tourist season. Check out their website. 9. Discount the room rates and the occupancy rate will increase accordingly. More revenue, however more work is involved. Again, this is a life style choice for new any owners to consider in terms of operation.
More heads in beds is more revenue. 10. Your own new ideas! We are a seasoned business operation with over 16 years in the local lodging industry. We have an excellent and profitable business plan of operations that is very successful and any new potential owner will inherit a well-run and profitable business entity.
A year round business with significant annual cash advance reservation deposits and a “built in” or fixed clientele for the winter, these factors virtually eliminates any anxiety of a new owner about whether they can service the debt or have immediate cash flow on hand. There is more than sufficient revenue to service the debt and annual expenses. We have the perfect ideal downtown location, and the mantra of this type of business operation is location, location, location.
We are the only historical operating bed and breakfast inn currently providing lodging in the Capital City. We have absolutely zero competition for this type of lodging experience and are unique in the use of a historical structure. If you want to visit the Capital and stay in a historic bed and breakfast, we are the only one in operation. We are five blocks from the waterfront in a neighborhood of historical homes. All of the building’s maintenance and systems are up to date and there are no repair issues or problems to be addressed by a new owner. The building was stripped to the framing with all new wiring, plumbing, structural, foundation and heating and fire protection, so there are no hidden issues pending or in need of attention period.
All cast iron and copper plumbing, sound deadening walls, radiant floor heating in some areas, two inch waterline, and many other upgrades throughout the house too numerous to list here. The exterior of the house was last repainted entirely during the summer of 2015. All interior trim was painted in the spring of 2012. During the summer of 2013 two new fuel tanks were installed and plumbed, along with a complete over haul of the furnace at a cost of just over $11,000. The fire escape was also replaced for $16,500.
The Inn’s web site just (April 2014) went through a major face lift for $7,000 ensuring all device capability. Given the current local and prohibitive building codes for B&B’s and coupled with the lack of available historic houses within the multi-use zoning area of downtown, the chance of competition from another B&B is extremely remote.
So, no competition from another B&B! Probably ever! Alaska’s Capital Inn will in all likelihood be the only historic B&B in downtown Juneau. Be sure to check our website to obtain additional information about the Inn. Also, be sure to check out our facebook page for the latest news. Should you have any additional questions or need more information, please let me know.
Our phone is 907-586-6507. A commercial appraisal of the business was completed in January 2015. It is worth mentioning that this business would definitely qualify for a Small Business Administration (SBA) loan.
We worked through our State SBA coordinator in Anchorage to get our loan approved. Our original SBA loan was based on our business plan and financial projections; there was NO operating business at the time, only our vision of a successful enterprise. So now, with a seasoned, profitable, and successfully run business in place and with advance reservations, getting approval for a loan of this type should not be difficult at all. There is paperwork involved, but in our case well worth the time and effort. Included is the historic home, out buildings, business name, web site address, client list, credit card machine, reservation software, food/fuel/gas inventory, telephone system, computer network, current marketing contracts, and all advance cash deposits.
Also, a large inventory of spare parts, pieces, and supplies on hand at the time. Some furnishings, fixtures, and equipment are included for the Inn to operate. A new Toyota Tundra is available for guest transportation needs. We move guests between the Inn and the small cruise ship dock as a courtesy.
As a result, we are highly recommended as the preferred place to stay while in Juneau. These are all seasoned and wealthy travelers. Alaska has been our home for almost 40 years, so we are not leaving the area. Should new owners desire some assistance or inn sitting, we will be around town.
Thanks for viewing and now to plan your future! This is a unique opportunity for the right couple looking to run this type of hospitality business.