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The Craignair Inn Spruce Head, Maine

Craignair Inn is a beautiful waterfront property on Clark Cove built in 1928 to house the quarry workers. It was converted to an inn in 1947 and has been in operation since. There are 21 guest rooms, a 45 seat dining room and a gorgeous view. Close enough to Rockland for convenience, but remote enough for quiet relaxation.

the common spaces

casual and comfortable
breakfast and dinner with a view

a taste of the guest rooms

fresh, playful colors
creative touches
beautiful color combinations and no two rooms are the same

property highlights

  • Built in 1928
  • Approximately 10,000 sf
  • 1.5 acres on two lots
  • Residential zoning
  • 21 guest rooms, most with private bathrooms, 8 with exterior entrances for those who prefer more privacy, or who are travelling with their pet
  • guest library with fireplace, area information, board games
  • 45 seat dining room with direct views of the Atlantic and Clark Island
  • spacious porches on both buildings and lots of Adirondack chairs lining the deck and lawn overlooking the water
  • coffee/tea available all day
  • out-of-the way location while just 15 minutes from Rockland and 20 minutes from the Monhegan Ferry terminal in Port Clyde
  • 8 room Annex building open seasonally May – October, Inn open year-round for lodging.
  • dining room open seasonally May-October + the very popular “Friday Night Burger Night” starting on New Year’s Eve and Fridays January & February. Also available year-round for private events and holiday meals which are always well attended
  • full and spacious commercial kitchen with all appliances, walk in refrigerator, dry storage ice machine, wine cellar
  • ample, private off-street parking in gravel parking lot
  • Wi-Fi and cable TV in all bedrooms
  • Roof: Composition shingle on Annex (new 2017) Metal roof on Inn (new 2015)
  • Windows: thermal pane replacement (many replaced 2017)
  • HVAC: oil fired, hot water, baseboard, multi-zoned off heating system
  • Gas: Bottled
  • Water/Sewer: Private
  • Full attic on 4the floor which is under-utilized. It has a full bathroom and a wide-open space that could be used for employee housing/hobbies/living space
  • carbon monoxide detectors and battery/hard wired smoke detectors
  • 2017 real estate taxes: $9,362.94

a bit about the inn's business and reputation

  • Rooms priced from $85-245 depending on the season and room
  • Established relationships with a variety of caterers, florists, party rental vendors, musicians, and officiants for weddings. 90 guests can be hosted outside, and 45 inside. Could be more extensively advertised/could development elopement package
  • Excellent good will among existing customer base, as evidenced by guest feedback on TripAdvisor, Facebook, booking.com and other reviews. Voted "Best Seaside Country Inn" by Yankee Magazine
  • Highly loyal and engaged customer base with numerous repeat guests
  • Contact list with thousands of previous guest emails set up for ease of communication of upcoming events/opening date, etc plus active presence on TripAdvisor, Instagram, Facebook
  • Website utilizes a Squarespace template that’s easily edited – requires negligible technical skill to edit/maintain the site
  • The Inn’s reputation has been built in large measure on the delicious and beautifully presented meals. Recipes and menus for breakfasts and dinner will be available for a buyer if requested
  • Craignair Inn’s operational model focuses on delivering a superior guest experience New ownership will gain access to a high-functioning turnkey business including an organized and documented set of operational standards and practices including:
  • Employee Policies, Housekeeping Procedures
  • Video documentation of how to winterize the Annex Building and maintain the water system
  • Preferred vendors (food ordering/delivery, appliance maintenance/repair, oil, plumbing, electrical, website, advertising, POS/merchant servicing etc.)
Beautiful venue for weddings and events, indoors or out

owner's quarters

Private second floor owner's suite with 2 bedrooms, 2 full baths, breakfast nook, office/storage, plus large living room-a very comfortable space with breathtaking views. Direct access via stairwell a step from the OQ door to the kitchen

History

Set on a granite ledge rising from the sea and surrounded by flower gardens, the Craignair was built in 1928 to house workers from the nearby quarries. It was converted to an Inn in 1947 and little has changed here since the turn of the century. You can still feel the mood of a once lively and active working town. The union hall still stands as well as the old general store and post office. The chapel, where the stone-cutters and their families once worshiped, is now an annex to the Inn. Evidence of the quarry-workers' time is also portrayed in the beautiful granite causeway that stretches across the water to Clark Island, where a great quarry was once the center of this picturesque village. Clark Island granite was used in the construction of the central park bridges and gate houses, and in the Brooklyn Battery Tunnel, both in New York City, and the Library of Congress in Washington, just to name a few.

area location, access and visibility

Craignair is 30 minutes to Camden; 20 to Rockland; 2 hrs 15 minutes to Bar Harbor; 1 1/2 hours to Portland; 1 hour to Bath; 2 hours to Kennebunkport and just 20 minutes to the Knox County Regional Airport, where in season, there are flights daily to/from Boston via Cape Air, a Jet Blue partner.

Craignair offers a great midcoast location from which to explore any direction

market position and competition

Tourism is the number one industry in the state so the lodging choices in this region are wide-ranging, from small inns and bed and breakfasts to a few larger motels and hotels. Craignair Inn is one of only 2 inns in town, but one of 150 B&Bs and inns and 80 hotels/motels in the region. Midcoast Maine is a very popular region for tourism.

There are clear differences between B&B guests and hotel guests. With a property such as Craignair, they appeal to both the hotel and B&B guest alike.

Craignair Inn offers rooms priced from $85 to $245 depending on the season. There is room for growth in both peak and non-peak seasons.

market potential

When looking at any business, determining market potential is at times an exercise in creative imagination. A study of the revenue patterns for the past few years at Craignair Inn demonstrates that it has enjoyed a steady increase in business, despite a dip in the economy and tourism some years back. While the inn has grown the income, there remains future potential for new innkeepers with rooms, restaurant and events.

With a continued disciplined approach to the business, judicious expenditures for controlled expenses and continued marketing, Craignair Inn can generate a very comfortable ROI with a wonderful business and lifestyle for new owners.

investment considerations

The process for assessing and valuing the business is multi-layered. The first step is to look at an actual profit and loss statement.

The second step is to consider fixed and variable costs. How can you manage things more affordably? How will you increase revenue without increasing expenses? What can you do more efficiently? Can you market more aggressively? Based on your cash down, how will your net operating income work for you?

The most important part of the investment analysis is the debt coverage ratio. This is important in assessing whether a lender would consider the cash flow to be adequate to support a loan. They are generally looking for a number of at least 1.20 to 1.28. With the appropriate down payment for commercial lending, the numbers work at Craignair Inn.

Additional Sources of Information

The inn's website

The broker's listing info

Link to additional property photos

Maine Tourism Association

Maine Innkeepers Association

Other Documents Available

  • Deed
  • Supporting Financial Statements
  • Inventory of Personal Property
  • Seller’s Property Disclosures
  • Improvements List
  • Photos of Owner’s Quarters

The Craignair Inn is offered at $1,475,000 and is proudly brought to you by

Inn Brokers and Consultants Since 1993

Dana Moos, Lodging, Inn/Bed and Breakfast and Motel Broker

Lafayette Center - 2 Storer Street, Suite 404, Kennebunk, ME 04043

iPhone 207.266.5604 efax 207.669.8326 dana@danamoos.com www.danamoos.com www.bbteam.com

Innkeeping: a home, a job, an investment and a lifestyle

Broker/Consultant Disclaimer

The B&B Team® and its representatives believe that the information contained herein is accurate and has been obtained from sources it believes reliable, including the owners of the property and business, but it has not been independently verified, is not guaranteed and is submitted subject to errors, omissions, change of price, prior sale, or withdrawal without notice. There may be additional information available to a purchaser from other sources. Purchasers should exercise whatever due diligence they feel is necessary and should not rely upon the information contained herein. Neither The B&B Team nor its representatives warrant the suitability of the property for any particular purpose and do not assure the success of any future or contemplated business venture. If you have received this from anyone other than The B&B Team or someone authorized by The B&B Team, its use is strictly prohibited.

Non-Disclosure of Material

This buyer’s offering report contains information of a sensitive nature. The owners of the property and business herein described do not want this information shared with anyone other than your legal and tax advisors; therefore, this information is released on the understanding that it will not be reproduced or disseminated without written permission of the Broker or Consultant and only after agreeing, in writing, to maintain the confidentiality of the information.

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