Iron Horse Oufitters & Inn In Beautiful Lanesboro For Sale

Property Information

Real Estate:

Real Property Included

Premises Details:

Current facilities are adequate for current operations. The real estate is currently configured as a retail sales space (motorcycle accessories) and hotel (4 rooms with a common room). The current finish for the interior was completed in 2014.

The building is 3 floors and approximately 5,200 sq ft. Approximately 1,750 sq ft is directly related to the hotel operations, approximately 3,750 sq ft is used to conduct the retail operations.

This is a corner site with Coffee Street E on the south with 25’ frontage, and Parkway Avenue N on the west with 70’ depth. Gross area is 1,750 square feet. There is no access on the north or east with abutting buildings.

The site is fully improved with curb and gutters, concrete sidewalks and bituminous streets.

The site has municipal electricity, water, sanitary sewer, and storm sewers available. Natural gas, telephone, and TV services are also available to the site.

Business Operation

Expansion Potential:

There are an abundance of growth opportunities for this operation, including: 1) having the retail store open more days and hours, 2) adjusting room pricing to bring in more revenue, 3) investing in marketing efforts, 4) organizing more motorcycle rides to Lanesboro/the store, 5) attend motorcycle events to find more potential customers.

Competition / Market:

The need for hotels and motels depends heavily on domestic and international tourism levels, making these businesses susceptible to the overall economic environment. The COVID-19 pandemic's travel restrictions mostly paused travel activity for an extended period of time, causing hotels and motels to be one of the industries hit the hardest in 2020. The lifting of those travel restrictions resulted in skyrocketing hotel revenue in subsequent years but rising inflation pushed some consumers to reduce spending on leisure activities, causing revenue growth to slow down. Hotel revenue is estimated to have fallen at a CAGR of 0.4% to $239.0 billion over the past five years, including 3.4% growth in 2024.

The growth of alternative accommodations, including Airbnb and VRBO, threatens hotels and motels by increasing price competition. The highly competitive market leads hotels to include new services to maintain their revenue streams, although not all hotels have been able to do so. Specialty hotels – including extended-stay hotels, boutique hotels, spas, health retreats and resorts – are expected to experience higher growth as they offer unique features that differentiate them from others in the market.

The Small Specialty Retail Stores industry is driven by broad macroeconomic variables rather than product specific trends. Still, individual segments do respond to specific shifts in consumer preferences. Over the past five years, rising per capita disposable income has sustained demand throughout the retail sector. A recovery from the pandemic boosted consumer spending and encouraged consumers to return to brick-and-mortar stores. Specialty retailers were relatively unaffected by coronavirus declines as high-income consumers and tobacco users, two significant markets for the industry, continued to spend. Competition from online and big-box retailers has risen, putting downward pressure on industry profit. Overall, industry revenue has expanded at a CAGR of 3.5% over the past five years, reaching an estimated $65.7 billion in 2023, when profit will comprise an estimated 5.2% of revenue.

Despite intensifying competition from discount department stores and online retailers, specialty retail store sales will rise an estimated 2.8% in 2023. Big-box stores offer a one-stop shopping experience with lower prices for similar products. External competition has driven underperforming retailers to exit the industry, leaving non-employers and small retail stores with low barriers to entry. Still, rising demand has prompted the emergence of many new specialty retailers seeking to capitalize on the post pandemic trend of shopping locally and broader sustainability trends. Small retailers have maintained a strong customer base by offering a unique in-store experience and high-quality products. – IBIS World

Reasons for selling:

Divorce.

Trading hours:

Monday-Friday 8am-5pm

Years established:

9

Other Information

Support & training:

Will train for 1 week @ $0 cost.

Furniture / Fixtures value:

$21,875 - included in the asking price

Inventory / Stock value:

$21,500 - included in the asking price

Home based:

This business can be run from home.