Funding Sought to Purchase Successful New Jersey-based Family-Operated Inn
Posted by: sally mechur on 1/31/2017 4:49:47 PM
Funding Needed:
Above $1mil
Consumer Products & Services
Location :
New Jersey, USA
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Hospitality / Tourism

2014 Actual: $1,182,020
2015 Actual: $1,241,121
2016 Projected: $1,150,000
2017 Projected: $1,265,000
2018 Projection: $1,391,500
2019 Projection: $1,530,650
2020 Projection: $1,683,715

Financing Sought

Use of Proceeds
The vast majority of the funding ($8.6 Million) will be used to acquire the properties. The remaining funds will be utilized to cover initial operating expenses.

Additional Documents Available
Business Plan, Financial Projections, Executive Summary

Business Description:
The Inn and the adjacent apartment property have been part of the Ocean City, New Jersey community for more than 53 years. The properties have been popular with tourists from the beginning due in part to their proximity to the boardwalk and the beaches. The current owner is looking to sell the properties and retire they have put the properties on the market for a total asking price of $8.6 Million. The new owner intends purchase the properties and to begin operations as soon as funding is made available. For a more complete description of the properties investors can request a copy of the full business plan.

The Company will be expanding the current marketing efforts to include a greater emphasis on web-based marketing and social media marketing. It has been noted that more and more travelers are finding the services that they need using these search engines and it is felt that with some additional efforts in these areas a significant increase in room occupancy will be noted.

In addition, the Company intends to take full advantage of the Tourism support offered by the State of New Jersey and by the City of Ocean City itself. The newly created Ocean City Hospitality Zone offers a number of benefits including increased advertising, marketing and cooperative services with other providers. Additional incentives and benefits are being discussed by the City and will be implemented in the near future.

Key Success Factors:
One of the key factors for success on this project is the fact that the properties have been cash positive since the current owners built the facilities in 1963. With Ocean City being one of the top tourism destinations on the east coast and with the properties just one street off of beach block, success in this project is all but assured.

Key Risk Factors:
The Company has examined a number of potential risks that could impact the future operations of the Inn and associated apartment complex. Based on the past earnings and the current level of both city and state support, it has been determined that the risks that have been identified, while being significant, do not pose an undo threat.

Important Milestone:
The Company is seeking investors to assist with the purchase and operations of the existing and income producing motel/apartment properties. These properties have been income producing since 1963. The hotel units have seen a steady increase in income over the last several years. In addition to the hotel, the purchase will also include a separate apartment complex. The CEO intends to invest a total of $250,000 of his own funds into the project. The CEO presently holds 10 patents (6 for burial urns for people and pets and 4 for a toothbrush holder for the Arm & Hammer spin Brush.

Exit Strategy:
The Company anticipates operating in the black for many years. Investors will receive a significant return on investment with the specific details to be worked out at the time of investment.
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