Posted: Aug 30, 2017
Would you like to buy a Guesthouse in Old Town Key West?
Victoria House

From January 1, 2015 until July 31, 2017, seven B&B's, Guesthouses and Inns Sold in Key West. Sale prices ranged from $2.275M to $9M. Presently five such properties are For Sale with sale prices ranging from $2.99M to $4.8M.  Each of these properties offer unique accomodations and services with one also offering a pair of retail stores. Guesthouses are becoming increasingly popular as they offer the personalized service and "taste of Key West" so keenly desired by travelers. Generally guesthouses are located in close proximity to the primary commercial district along and within a block of Duval St.  Occasionally a guesthouse will exist in an Old Town neighborhood, allowing the guest to enjoy a more "locals" experience.  As noted in Part I of this two-part sequence, B&B's and Guesthouses have been providing owners and investors with solid long-term gains regardless of other market influences. Let's review the five For Sale for an investment opportunity.


Part I of this report reveals that B&B and Guesthouse average Occupancy Rate for 2016 ranged from a high of 90% (March 2016) to a low of 73% (September 2016). Average room rates and average Revenue per Room are also detailed.  Weekdays, weekends and Holidays, you're going to be busy.  Guesthouses are a tough business with rewards measured as much (maybe more) in Trip Advisor Ratings as in dollars. But if you can differentiate yourself from your competitors, you'll have an opportunity to prosper while making someone's Key West dream vacation come true.


Let's see what opportunities are presently on the market -

Frances St. Bottle Inn - 1101 Southard Street

The Frances St. Bottle Inn is in the center of Old Town and is surrounded by charming, wood frame homes from the early 1900's, a stylish boutique and a pair of well-thought-of eateries. Once a corner grocery and later a boarding house, the newly remodeled and pet-friendly Inn looks just like the homes around it -- big porches and louvered plantation shutters that are concealed by lush, native trees and palms. The spacious and airy guest rooms have a selection private balconies and porches.


Two of the eight guest rooms are more suite-like in design with living rooms and kitchenettes for your longer stay. You can walk either west to Duval St. or north to the Historic Harbor area in no more than 10 minutes.


The Frances St. Bottle Inn is offered for sale at $2,990,000.

Casa Victoria - 806 Truman Avenue

Casa Victoria, also known as Victoria House, was once a Bed and Breadfast (Tree Top Inn) but has been used as a single family residence since early 2012. This grand 5 bedroom, 5 bathroom (and 2 half baths) property is filled with Dade County Pine, elegant architectural features, high ceilings and top-end amenities.  There is a heated pool, a separate heated spa and off-street parking for two vehicles.


This wonderful home dates back to 1908 and has been resident to Key West society ever since.  There are three transient licenses on the property which authorizes overnight rentals.


Casa Victoria is being offered for $2,995,000.

Garden House - 329 Elizabeth Street

Garden House is a two building, two story, twelve bedroom/twelve bathroom Bed & Breakfast within a two block walking distance west to downtown Duval St. or two blocks north to the Historic Seaport district.  There is a large, in-ground, commercially licensed and heated spa-pool. There are ten transient licenses asociated with the property.


The Garden House is being offered for $3,500,000.  At the time of this writing there is a Contract for Sale on the property, price of pending sale is unknown.

Knowles House - 1004 Eaton Street

The Knowles House is located just 5 blocks from Duval St., and 3 blocks from the Historic Seaport and Boardwalk areas of Key West.  The property was built in the 1860's as an all-wood, one-story, two-room-plus-loft family home with a pitched roof. In 1935 a second floor was added, along with modern plumbing, electricity and a large concrete cistern. In 1997, the current owners added a rear wing and converted the property to a bed and breakfast.

Guests can relax inside, or outside around a private, palm-fringed pool garden with soothing fountain and Jacuzzi, a comfortably furnished porch or atop a secluded rooftop sundeck that overlooks the pool and garden.

The Knowles House has eight guestrooms and is offered For Sale at $3.25M

Maison sur Duval - 824/826 Duval Street

Maison Sur Duval, also referred to as Top of Duval, is a two story, dual-use, condo and retail, commercial property in the heart of the mid-Duval Street business district. The 1st floor has two large, retail spaces that directly access Duval Street.  The 2nd floor contains 6 transient licensed, 1 bedroom/1bathroom condos that are available for overnight rentals. In the rear there is a pool and private parking.


I can think of no other such property where twin income streams are available; long-term retail triple net leases and short-term overnight guesthouse rentals.


Maison Sur Duval is offered For Sale at $4.8M.



Since early 2015, I have reviewed Key West Guesthouse eleven times; for Blogs and for Guesthouse customers.  Throughout this time period two items have stayed constant; the resilence of the overall guesthouse business model and the average sale price per transient license has stayed within a range of $400 - $410.


Each guesthouse Sold and For Sale has its own Return on Investment, Occupancy Rate and Revenue per Room.  These figures are a direct reflection of the guesthouse owner's business acumen and condition of the property.  All of these properties are also represented on travel web sites.  Of note, a healthy client and return-customer base will optimize your business metrics as you will not so much need (and have to pay) for travel sites to bring you customers.


Please take another look at Part 1 of this series for 2016 End of Year data from the Monroe County Tourist Development Council for a bid picture look at the overall hotel and guesthouse industry in South Florida, Monroe County and Key West.


If you have any questions, plese contact me here.


Good luck!