Kevin Reardon | Boutique Hotels

@TheMotelMan Great info!

@SunShakSunday @PriteshSMB @TheMotelMan Do oceanside motels count?

Is there anyone on X repositioning roadside motels besides @PriteshSMB and @TheMotelMan ?? Would love to follow along.

@mattressguy_ @jasondavisseo Cellcore products are some of what I used. They’re awesome. Like Jason said, can’t stress enough to ease into it in the right order. If you release too many toxins at once and you’re overloaded with them you’ll feel awful

@jasondavisseo Going to look into this thanks bro

Been dealing with Mold Toxicity for a long time now It's affected a lot of things in my life Who has suggestions?

@mattressguy_ I did the detox program by @MacinJoshua and it has changed my life highly recommend

@mattressguy_ @PriteshSMB @astronautapu @somehotelguy They definitely have their place (ease of financing and development) but I agree the mattresses are terrible and expensive, one of the reasons people love us as an independent

@PriteshSMB @astronautapu @ReardonKevin @somehotelguy Feel free to tag any other hotel guys especially the ones under franchise models Would love to hear

Hotel owners: Why do people still franchise under these old hotel brands? I’ve had three deals fall through because we weren’t a preferred vendor aka kickback machine Would’ve saved each company at least $7k minimum

@PriteshSMB Love this...so much better!

Before / After Hotel Pommier Chariton (location #2)

How I turned a drug-infested motel into a $4M boutique hotel exit. 70%+ direct bookings. $500+ nightly rates. Multi-million dollar exit. Everything I learned is in my new book: The Boutique Hotel Blueprint. Available on Amazon (link in bio).

@uniquestaysguy Congrats Ben looks awesome! You guys are right on with the concept. Can’t wait to stay here

I'm finally ready to share a secret. Meet Baya. Our new 20-key tropical landscape resort in Redland, Florida. Just 45 minutes south of Miami. But this isn’t your typical Florida resort. Here's what makes Baya special...🧵

@PriteshSMB great brand standard! congrats!

Renovation DONE! Sharing 2 of my favorite photos from our Grand Opening. The old Super 8 didn't have a flag pole. So I spent $5k on one. Got local veterans to help with a flag raising ceremony. Will it generate revenue for us? No. But as a naturalized citizen, it was a non-negotiable. America is the greatest country on earth, and our hotel is proud to make this a 'brand standard'. We went all out for the Grand Opening I almost forgot about the ribbon cutting. Family, team members, vendors, and community leaders all stoked about the new hotel. Couldn't ask for more.

@JWurzak Even worse is when they try to sell hotels

I think it’s lame when residential brokers have their name and website on their car. It’s just an odd look .

@PriteshSMB hell yeah go crush it

The wicked witch is dead! Our 20 yr Super 8 franchise agreement has expired. Sign goes down in a few days. On the one hand, we are spending way too much money to (properly) renovate and deflag. $20,500k/room. That includes infra like a new parking lot, lights (yes this hotel never had parking lot lights!), new fire panel, etc. On the other hand, only harry potter could get new hotel construction ($120k/room?) to pencil in small town Iowa. No one has ever bragged their town had a Super 8. They will when it's a Hotel Pommier!

@jmfelds Dealing with owners is my favorite activity ❤️

Turns out I’m actually in the owner management business.

@TheMotelMan I think you’ll get a buyer

@ReardonKevin $63k

Listing one of my extended stay properties for sale at a 12% cap. Don’t need to sell, but would like to see if I can find buyers for stabilized extended stays. Going full cycle on a deal also helps my underwriting for future deals.

@PriteshSMB Awesome brother keep going

I'm running on fumes. 9 month baby boy at home (incredible), moved into a new home, spending $$ to launch #2 while keeping both hotels afloat. Most days are a gut punch of cost increases, team issues, and always feeling behind. So it doesn't take much to have a good week. And last week was freaking amazing. Electrical inspection - passed Building inspection - aced Fire panel - on schedule Hallway carpet - delivery confirmed Reno tours with community leaders - flying colors Heart warming guest reviews - minted Oh and our reno made it on the largest news station in Iowa (shout out @nicoletamnews!). Was scared to share reno #1 in case it didn't work out. Talking about #2 publicly is still scary. But it's raised our profile and I hope will make acquisitions easier. So if you are riding the roller coaster of small business ownership, you are not alone! Learn from the gut punches but remember to celebrate the wins, no matter how small.

@TheMotelMan 💯 I usually make a schedule of all the personal property around the motel…inevitably the owner starts picking out things he wants to keep/didn’t “think” was included

Friendly tip to include in your PSAs: “All FFE and supplies on the property at time of PSA execution shall convey at time of closing.” Will save you $10k+ of nickel and dime-ing the last couple days of closing. It’s funny how halfway through a deal the property suddenly turns into a storage unit for their other locations, and they decide they want to take all the appliances from the manager’s apartment.

@isaacfrench_ required reading for anyone in hospitality!

At the doorstep of 20,000 newsletter subs! (started the year with <3k) I’ve spent 5-10 hrs ea week this year writing about design, craftsmanship, and experiential hospitality. What surprised me the most?

@chrisderose a lot of IG guys great telling us about their projections, light on actual realized returns

“A quick three year hold with a 29% IRR.” Don’t guarantee returns. Hire a lawyer if you’re selling securities.

@JWurzak Awesome design can’t wait to visit

I’m betting this will become the hottest bar and restaurant in St. Pete. Introducing Sparrow at the Moxy Hotel. Opening this Friday.

Alternatively to the traditional motel investor of the past few decades whom lives on-site with their family: There are buyer of grimy motels (like myself) that don't trade on cap rate, but more of a comparable cost per-key basis in the related market. The end buyer is looking for rooms existing in a market that are under the replacement value. Developers then use these shells to then create nicer, boutique accommodations, extended stay accommodations or even condos. Technology now allows newer operators to run these operations somewhat remotely, stripping away some of the overhead of operations. This also allows you to return the owner's quarters to rentable inventory. These changes allow you to push the NOI of the property much higher. Not super impressed with OYO from what I've seen, this is not the type of operator that's going to do the above.

I don't understand motel real estate valuations at all. $1,500,000 for a 30-room Motel 6 in a dying, depressed, grimy town of 7,500 people? Motel 6 franchise also was recently bought out by OYO, which looks like a nightmare (every OYO I've ever stayed in was 10x more disgusting than the worst Motel 6). And many of the locations for sale appear to have capitalization rates that look way too high to be true. Further, if I go by said $1.5M Motel 6 in ghettoville on any given night, it's maybe 30% booked at most. Rooms are $90/night. If operating expenses run 65% of gross profit, how are people making a go of this? I see these kinds of listings all over the country. Who the hell is buying them? How are they pulling it off? Why are the valuations so high? Are there any X accounts who post about this stuff? Books I could read? I want to understand this market badly, but I just can't figure out who would look at motels like these and actually buy them.