The Hotel Investor Playbook Buying, Financing & Operating a Seasonal Boutique Hotel | Ryan Edwards E17
Feb 11, 2025
In this discussion, Ryan Edwards, owner of a 17-unit boutique hotel in Maine, shares insights on turning seasonal challenges into lucrative opportunities. He reveals his $3.6M financing strategy with 75% bank support and how a $100K revenue boost increased his property's value by $1.4M. Ryan emphasizes the power of a fully direct booking strategy, sidestepping OTAs entirely. He also tackles staffing hurdles using visa programs and discusses innovative marketing techniques that ensure consistent bookings months ahead. Perfect for aspiring boutique hotel investors!
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Buying A Seasonal Waterfront Inn
- Ryan bought Five Gables Inn, a 16-room waterfront boutique in Booth Bay, Maine, plus two houses including a converted cottage.
- He operates seasonally (May–October) and uses staff housing to support summer operations.
Build A Bank‑Ready Pitch Deck
- Present a clear financial plan showing how investors or lenders get their money back when pitching a hotel deal.
- Include operator credibility, market demand, revenue/expense forecasts, and reappraisal upside in the deck.
Income Valuation Drives Appraisals
- Appraisers value seasonal hotels using income-based NOI divided by market cap rates (around 7–8% here).
- That income valuation often aligns closely with resale valuations, driving lender acceptance.