Lake Tahoe Inn Rehab
Lake Tahoe is a very popular tourist location. In the middle of several well-performing Inns and Hotels, this one is a struggling Inn of 32 rentable units. The owner has personal family issues, due to which they are not paying attention to business. There are deferred maintenance and understaffed management which is affecting the revenue generation.
Project Plan: Purchase the property in as is condition, provide appropriate staff to prepare the rent-able units, upgrade/renovate appropriately to bring to market (better than the average competition) condition and bring up the revenue to market revenue. Project duration is about 12-15 months.
Financing: Initial purchase is financed by hard money lender and private lender and renovation and holding cost is raised from private lenders. Once the property is performing at market levels then it will be refinanced with a regular loan replacing the hard money lender and the private lenders will be paid off.
Exit: After re-capitalization, the shareholders of the project, plan to keep this Inn for passive income generation.
Rehab Details
| Property City: | Tahoe City |
| Property State: | CA |
| Purchase Price: | $2700k |
| Rehab + Other: | $1000k |
| Money Cost: | |
| Sale Price: | |
| Gross Profit: |
*** June 25, 2023 ****
1) Awaiting the response from the county for further action.
*** April 9, 2023 ****
1) YoY Increase: 9% occupancy, $16k revenue
2) Gearing up for Spring Ski activities
3) Marketing focus is to increase mid-week stays and direct bookings
*** Dec 19, 2022 ****
1) Added to new tenants at the Mall.. to get additional working capital
2) 2022 numbers are higher than 2021 and 2020.
3) Resort entitlement is in progress with no timeline updates.
***Aug 31, 2022 ****
1. Strong customer interest is shown since the acquisition.
2. Operations team is working hard to enhance customer experience and revenue.
3. EIR started with an ETA of Q1 2024
4. Team is working with different operators for future redevelopments.
***July 13, 2022 ****
- We have had the strongest summer of ownership at the Inn since our acquisition. Our operations team has been working very hard and we are proud of the guest experience and the revenue we have created. We have begun our EIR process and have a targeted completion date of Q1 2024. I have been working with different operators for the future redevelopment and will have further updates later this year.
***July 13, 2022 ****
1) NTRAC offer great feedback on the proposal
2) EIR started with an ETA of 18-24 months
3) Inn is performing at a better level offering cash flow for the project.
***March 31, 2022 ****
1. Last three months occupancy has been great.
2. Staffing discussions and planning in progress for summer.
3. We have leased Suite 7 to a tattoo shop
4. Hemmings and Jarret Closed in Jan, back filling the space with Regus who is a 33-year-old co-working tenant.
5. Leasing Suite 31 with an Architecture firm.
***Jan 31, 2022 ****
1) Noted a big Increase in Stays
2) The Snow and a new digital marketing is a huge plus
3) We ended Dec 2021 as the 2nd largest month of the year
***Oct 21, 2021 ****
1) Running nearly at 85% occupancy, up from 60% before
2) New restaurant, Mirada, opened on one of the parcels
3) Entitlement work in progress with local authorities.
***July 17, 2021 ****
1) The Inn is running at almost full capacity.
2) Entitlement work is in progress.
3) Future resort rendering attached
***May 16, 2021 ****
1. Redevelopment paperwork ready for resubmit
2. Mall was occupied at 40% occupancy and now running at 83% occupancy
3. Year over Year ADR for the Inn (Tahoe Inn) is running 20% higher.
***Nov 28, 2020 ****
***Sept 26, 2020 ****
1) Remodeling is 95% Complete.
2) Weekend bookings have picked up really well since July
3) Boatworks Entitlement process is in full swing
***July 19, 2020 ****
1) We reached a $440 a night over the July 4th weekend and 100% occupancy
2) Interior renovations 98% complete
3) Exterior patching and painting in progress
***June 05, 2020 ****
1) Nearly complete on the interior unit renovations
2) Aiming for 6/19 date for full completion
3) 6/23 date planned for design review for exterior
***April 07, 2020 ****
1) 21 units completed.
2) Weekends were nearly full prior to Covid-19
3) Occupancy has dropped like any hotel/AirBnB
***Feb 08, 2020 ****
1) Now re-branded to The Inn at Boat-works.
2) Running at full occupancy over weekends
3) New batch of units will be completed in 3 weeks
***Dec 28, 2019 ****
1) Up to 20 units have been updated
2) Few more units are being worked on
***Oct 30, 2019 ****
1) We have begun the environmental studies and competed the traffic study as well.
2) We have finished 8 rooms.
3) Few additional rooms to be ready late November.
***Sept 11, 2019 ****
1) Owner’s Suite is complete and has been on AirBnB for a few weeks
2) The 10 room under construction is near completion
3) Once these are turned over, a new set of 10-12 rooms will be worked on
***July 29, 2019 ****
1) Units in progress have been carpeted and painted.
2) Once these are online for business, 10 more units will be demoed for work.
***June 22, 2019 ****
1) Permits received to begin work
2) Owner’s suite is being prepared to be put on AirBnB, including adding a kitchenette
3) Additional demo’ed units: 1 King Room, 1 Double Queen, 1 Suite
***May 18, 2019 ****
1) 3rd Revision of plans have been submitted to county
2) They needed more ADA Compliant units
3) 12 units are demo’ed and ready for work – awaiting permits.
***March 30, 2019 ****
1) Site Improvement Plan comments received from city. Preparing to resubmit
2) Due to heavy show demo work has been hindered
***Feb 23, 2019 ****
1) Working with the city for plans approval
2) 7 units are being remodeled
3) Heavy snowfall has slowed done activity
***Dec 23, 2018 ****
- Visited the property on 12-22-18
- Few pics included
- Further update pictures from owner’s suite
- Project manager is working on design permits & media contractor
