The long-term goal of Coach House Bed and Breakfast (Coach House) is to become the best choice on Tybee Island, Georgia for temporary lodging by creating a differentiated experience capitalizing on personal service, the historical nature of the Coach House building, and its unique location in one of the most attractive parts of the Old South. We plan to be more than a great bed and breakfast. We plan to create an environment of pampered luxury that surpasses the standard fare for Tybee. Expanding our exposure via the Internet and introducing the island to people that have not yet discovered this year-round paradise will allow us to maintain a higher than average occupancy rate and above average profits.
Coach House Bed and Breakfast is an established B&B, and has been in operation for the last three years as Marsh Hen Bed and Breakfast. After possession and a brief period of becoming established, Coach House will diverse into other ventures to ensure a steady flow of patrons (tourists and locals) through its doors.
The Coach House Bed and Breakfast will be a partnership, equally owned by John Maesch and Frank Williams. Mr. Maesch will reside on the property, managing and maintaining the business and satisfying Tybee Island license requirements.
The Coach House Bed and Breakfast was originally built in 1920 and is believed to have been one of three train stations on Tybee Island, linking the island to Savannah. The building has undergone a number of restorations and uses since the train service ceased operation. With construction completed, it now has the potential of four rental units with owner-occupancy in an unused room.
Creating a "home away from home" which is often more beautiful and palatial than where they are traveling from will ensure many return customers. The riches of Chatham County have always drawn a significant number of tourists to the Savannah/Tybee Island area. In addition to providing information about such locations, we plan to collaborate with tour agencies and businesses throughout the area by offering packages and special rates.
As the B&B becomes established through the peak season, we plan to expand our services to the residents of Tybee and Savannah in time for the off-season. The adjoining rooms open creating a large area, ideal for formal or informal gatherings (i.e. wedding receptions, office parties, Christmas parties, etc.).
B&Bs, along with other short-term lodging on Tybee Island, have been a substantial part of the island tourism. Of the short-term lodgings on Tybee, ten are categorized as inns, 19 as long-term lease facilities (rentals, condos, and houses) and only four as B&Bs, including the Coach House. Hotels/motels constitute the largest percentage of rental properties on the island in terms of units.
A modest projection for increased unit rental is 30% per year. Competitors on the island have averaged 30% + rental increases over the past three years, and the Georgianne Inn is forecasting 50% increases for the next two years before hitting full capacity. This projection is without any significant increase in advertising or exposure, but is based on the general average increase in tourism.
Our two major customer segments are tourists from the north who traditionally prefer the cozy environment of B&Bs, and local patrons who need the facilities for various events. Subscriptions to various Web services will provide international exposure to potential customers for nominal annual fees.
Coach House will be acquired via a small business administration (SBA) loan (CDC 504 Loan Program) with the buyers supplying 20% down, Ameribank supplying 50%, and SBA supplying 30%. We are assuming an initial capital start-up of $12,000 for operating expenses.
We estimate average monthly fixed costs to be at approximately $8,000 for expenses plus interest payments. Peak and off-season will have significant impact on the monthly earnings. For the first year, on-season revenues will offset off-season losses. As Coach House B&B builds its market position among the local patrons, we anticipate that off-season revenues will be enough to break even during that season.
The mission of Coach House is to become the best choice in Tybee for temporary lodging by expanding our exposure via the Internet (with multiple networks and links), and introducing the island to areas that have not yet discovered this year-round paradise. We plan to be more than a great bed and breakfast. We plan to create an environment of pampered luxury that surpasses the standard fare for Tybee.
The Coach House guest will have every need met to ensure his/her comfort. For special occasions, catered meals, chilled wine, etc. can be provided for an additional stipend. During the weekends, guests will return to the B&B in the evening and find cheese, fruit, and wine for snacking before turning in.
As the B&B becomes established through the peak season, we plan to expand our services to the residents of Tybee and Savannah in time for the off-season. The adjoining rooms open creating a large area, ideal for formal or informal gatherings (i.e. wedding receptions, office parties, Christmas parties, etc.). The outdoors, with its access to the beach, a beautiful, tropical front yard, and a private deck, opens several additional opportunities. A gazebo in the front yard would make the perfect location for a wedding, as would the sand and surf for those that prefer a beach wedding. With the capability for a catered reception inside, Coach House will make the event smooth and easy for the guests. Immediate family or selected members of the wedding party would be able to stay at the B&B ,while other party members will be referred to neighboring Inns. This collaborative practice is not new to Tybee, but Coach House will be a new member in the exchange.
Tourists will want to explore the riches of Chatham County (Bonaventure Cemetery, River Street, Worms Low, Savannah's historic district, market square, dolphin tours, the marinas, and Fort Pulaski to name a few). In addition to providing information about such locations, we plan to collaborate with tour agencies and businesses throughout the area by offering packages and special rates with in-kind incentives for the cooperating merchants, including tours originating from the Coach House.
Amenities that go beyond the typical B&B will include:
In order to succeed, the new management will strive to achieve the following goals: