The Kauai Inn

Lihue, HI (Kauai County)

The Kauai Inn
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Asking Price: Get Financing: $11,500,000

Cash Flow: $658,823

Gross Revenue: $1,528,327

EBITDA: $869,504

FF&E: $199,841

Inventory: $96,500

Real Estate: $9,600,000

Established: 2001

The Kauai Inn

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Business Description

Over 100 Years of Aloha on the Garden Island...it's The Kauai Inn!

On three tropical acres at the end of Nawiliwili Bay, our plantation style Inn was the first on Kauai and retains a sleeping old Hawaiian charm. Days with John Wayne and the cast of Donovan's Reef relaxing poolside talking story with guests. The Kauai Inn was moved to Kalapaki Beach in the sixties and in 1989 underwent a three million dollar renovation. Soon after Hurricane Iniki in 1991, the Mcknight family purchased the hotel and spent over seven years rebuilding, moving buildings, bringing the wood floors and the Kauai Inn back to life with just a few helpers and their family of five.
The Kauai Inn is still family owned and operated. All guest rooms have up to date amenities plus a microwave and small refrigerator, LCD flat screens, AC, WIFI, and includes a light continental breakfast pool side each morning.
In January, Kauai Inn was chosen to be on the Travel Channel to air in May. For six days crew of 16 from New York were on property filming the beauty of our Kauai Inn. We were advised by their professionals our room rates need to be increased from $139 to $250-$500 per night during peak season and market activities.
In the 2015 Fall issue of Journal Society for Commercial Archeology, a six page article, "Different Versions of Paradise", by Keith A. Sculle features the Kauai Inn's history and up to the present.
The Kauai Inn's 48 units were CPR'd by a prior owner. This means each room has it's own real property tax map key number and is considered to be a condo. The County of Kauai would never allow this today! When moving to Kauai, we attempted to purchase commercial real estate and found it impossible. Property is seldom sold as it can not be replaced so it stays in the ownership of local families. Many properties are "lease hold" in which the owner of the land allows the investor to build, collects monthly monies from the land lease for 50-80 years and then retains the building when the lease is completed That being said, Kauai Inn is a very unique opportunity on fee simple land with many possibilities other than hotel use. Yoga, natural healing, business retreats, weddings, 401K investment for retirement are also a few options on the operation and investment side.
We are in our early seventies and after 32 years on Kauai and now spend eight months of the year in Washington State enjoying a grand child and hot rod events events. Our eldest son and daughter-in-law have continued to manage and oversee Kauai Inn along with our other properties in Poipu. In their forties and residing on the beautiful manager's house, they have other dreams of their own. This two story manager's home has three bedrooms and two and half bathrooms, 1200 sq. ft., plus decks and lanis, hardwood and tiled floors, cherrywood cabinets, granite counter tops and stainless steel appliances. Lower level has a one bedroom apartment and/or shop. These life changes have lead our family to this decision to sell our Kauai Inn. The Kauai Inn is a very well maintained property and in the past two years we have put over $268 thousand dollars in improvements. Our family takes pride in ownership and always keep up our property.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Included in asking price
Building SF:
119,000
Employees:
12
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Four separate buildings total 30,000 sq. ft., 6 units up and 6 down in each. Our 200 and 300 buildings have Italian brass & marble vanities. Lower level rooms have refinished wood floors. Full commercial laundry with 3 comm. washers & dryers, separate coin-op guest laundry, tool maintenance room plus covered storage area, covered stainless steel BBQ area and patio. Office, covered ramadas 1000 sq. ft, pool replastered $32K. New mattresses, furniture & carpet 5 yrs. Rooms & buildings repainted 2014-2016. Located on 2.75 acres in excellent condition. (Home Based)
Competition:
Kauai inn is located three miles from Lihue airport so many travelers stay with us upon arrival and departure. Our average guest stay is four nights and repeat guest's are 53% of business. Sales for January were up 30% over 2017. Kauai Inn is located one mile from the Marriott at Kalapaki Beach on Nawiliwili Bay. We are in the center of history and tourist activities, golf, tennis, fishing, sailing, scuba diving, kayaking, shops and restaurants. Competition, none in our category and according to Travel Channel, increase rates and sell activities.
Growth & Expansion:
As mention above, room rates need to be increased and doubled according to the Travel Channel's hotel specialist. Activities, rental car room and activity packages need to be marketed for additional income. Presently none of this is happening. We are good at building and creating, but not good at running a business! The last building, 200 was completed in 2010, thus barely in service. With proper marketing, rate control, sale of activities and car packages etc, there is a potential for tremendous growth.
Financing:
No debit or mortgage, fee simple land. Prime property and location.
Support & Training:
Our excellent front desk and housekeeping will be happy to stay on with the new owners. Our family will be available for a period of six weeks for training in all areas for a smooth transition. We do have a new property management system, RMS, new phone system and website/ support being created with Milestone. All top of the line hotel systems and support.
Reason for Selling:
We are in our seventies and still in good health! Children have other interests.
Home-Based:
This business is Home-Based
Business Website:
http://www.kauaiinn.com
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Business Listed By:
Jami McKnight

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