Guesthouses flourish in Key West. Whether on the main street of Duval Street or in less hectic nearby neighborhoods, Guesthouses provide the personalized service that global travelers to Key West desire. Room rates are steady-to-rising. Return customers book 12 months in advance and occupancy rates are high Despite economic uncertainties everywhere, people still treat themselves to a well deserved time off. The holiday may not be long and extravagant yet a Guesthouse is a perfect reward. So, how are they as an investment?
There are six Guesthouses For Sale between $2.575M and $13.5M.
In order to rent rooms by the night, a Guesthouse must own and maintain specific licenses called transient licenses - one license per bedroom. Guesthouses must also be in areas specifically designated and zoned for transient rentals. In most cases this rules out establishing new Guesthouses in residential neighborhoods. Those Guesthouses that are located in neighborhoods have been in-place for many years and therefore receive a form of legal relief called grandfathering. Otherwise most Guesthouses, old and new, are within a corridor paralleling the primary commercial zone of Duval Street.
Let's review a few Guesthouses that are For Sale -
Frances St. Bottle Inn, 1101 Southard St., Key West.
The Frances St. Bottle Inn is at the corner of Frances St. and Southard St. in the center of Old Town Key West. It is a well established neighborhood Guesthouse only a 15 minute walk, or less by pedal, to area shops, eateries, galleries and the Historic Harbor district.
There are eight total rooms, seven transient rooms, two of which are spacious suites, and one regular apartment. One of the two suites is ADA compliant. The tax records state the Inn was built in 1939 but historic Sanborn Insurance maps show a large structure, formerly a corner grocery and then a boarding house, on this same corner continuous since 1889.
The business can be seen at www.bottleinn.com and is presently For Sale at $2,575,000.
Suite Dreams, 1001 Von Phister St., Key West.
The Suite Dreams Inn is at the corner of Von Phister St. and Grinnell St. in the neighborhood known as Casa Marina. The Casa Marina area inhabits the predominantly Southern residential and beach areas of Key West. Suite Dreams is close to the beach area known as Higgs Beach, the Casa Marina Resort and the region of Duval Street known as "Upper Duval".
Suite Dreams has 5 suites though they can be reconfigured to become 3 large suites. The property was built of concrete in 1953 and has its own off street parking. The Inn is all on one level and has two lovely pools.
The business can be seen at www.suitedreamsinnkeywest.com and is presently For Sale at $2,595,000.
The Blue Parrot Inn, 916 Elizabeth St., Key West.
The Blue Parrot Inn is a neighborhood Guesthouse in the Old Town section of Key West. Though it is in a residential neighborhood and the one-way street is narrow and quiet, it is only two blocks from the very center of the Duval Street commercial district.
The Inn has nine guest rooms with eleven bedrooms. The building originates from 1884 and was built in the Bahamian style with sweeping verandas and large airy rooms. There is a heated pool (shown at the top left of this article) bracketed by two separate buildings.
The business can be seen at www.blueparrotinn.com and is presently For Sale at $2,995,000.
L'Habitation, 408 Eaton St., Key West.
L'Habitation is 1/2 block from Duval Street between Duval St. and Whitehead St. It is next door to the Tropic Cinema, 1/2 block from the downtown post office and only steps to all Duval Street has to offer in the way of shops, eateries and theater. The best beach on the island, at Fort Zachary Taylor, is a 10 minute pedal.
The Inn has eleven bedrooms; nine individual bedrooms and a two bedroom apartment. Tax records date the building to 1939 but Sanborn Insurance maps place a structure in its spot since 1899 with further evidence pointing to its presence as early as 1874; hence, the Bahamian plus Victorian styles.
The business can be seen at www.lhabitation.com and is presently For Sale at $3,195,000.
Additionally
Rounding out the available Guesthouses are:
- The Coco Plum Inn at 611-615 Whitehead St with14 guest rooms at $4,500,000.
- The Island House Resort at 1129 Fleming St. with 34 guest rooms at $13,500.000.
Monroe County Tourist Development Council (TDC)
The latest monthly report received by the TDC on Hotel and Guesthouse performance in Key West, in fact all the Florida Keys, is for April 2014. This comprehensive report is from Smith Travel Research.
For Guesthouses, B&B's and Inns from January to April 2014 -
- The average Occupancy Rate was 90.8%.
- Which was .7% more than January to April 2013 and
- 5% more than January to April 2009.
- The Average Daily Rate was $277.
- Which was 19% more than January to April 2013 and
- 58% more than January to April 2009.
- The average RevPAR was $251.
- Which was 19% more than January to April 2013 and
- 65% more than January to April 2009
Conclusion
Key West Guesthouses serve a stable-to-growing market niche, particularly as travel tools such as tripadvisor.com provide foreign travelers with information that personalizes their vacation experience. A well managed Guesthouse will provide the vacationer with a memorable vacation (for now and the future) and will provide the owner and staff with financial success.
If you have any questions or coments, please contact me here.
Good luck!
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