21 Bed Hostel Right Outside of Yosemite National Park: Listed for Quick Sale
Ederbickems Hostel is located in Groveland, CA just 25 miles outside of Yosemite National Park which recieves over 4.5 million visitos per year and over 1.5m visitors per year on HWY 120 (which is right where the Hostel is located!).
Hostel can sleep 21 guests- it offers a mixed dorm room, private dorm suites, and private 2-4 person suites. The grounds have been lavishly landscaped and maintained. The Hostel Rooms are beautiful and the furniture/fixtures are all brand new (less then 3 months old). We are running at about 70-90% occupancy during on-peak season May-October (averaging $21,300 monthly revenues with the deli/bar !). The other months are not slow but average about 20-30% occupancy- with the proper marketing you could make this business flourish!
Here is the background:
My husband owned a hostel two years ago one block away from the current hostel- the space was too small and he had a bad business partner so he got out of the lease and leased the new space(s) a year later which is just a block down the road on the same street. He found out by owning the first hostel that hostels near Yosemite make a killing! Plus he was the only affordable lodging in the area- actually within 45 square miles. That drew a huge customer base.
So now we have a 5 year lease on 3 buildings all in the same plaza (feel free to Google Map it! Its really cool we have spent a ton of money on fixing up the buildings and making it really funky and fun) The address is 18605 Main Street Groveland, CA 95321. The buildings are all painted in the same color scheme (red, yellow, and vintage black) so you will see once you look at the maps all that it encompasses.
There is a building behind the Deli that we wanted to make into a laundromat or more dorm beds- we also have a lease on that but it doesn't have to come with the sale if you don't want to use it. However, a laundromat would be killer here as there is no laundromat within 45 minutes away.
The owner of the land/buildings is decent- I wouldn't say he is bad and I wouldn't say he is good! Just basically pay your rent on time and he leaves you alone. He, however, does love the business idea and supports us in the business- he even comes in and eats!
I am a web designer by trade and the current website isn't the one we would give you- I am getting ready to launch a freaking awesome website for the hostel in a couple of weeks! Some of my other work on websites are www.thefundraiserpros.com www.grovelandrealestatelistings.com and www.zleevez.com - just so you can see that the site will be top notch!
The guests are awesome!! I will miss them! We have an on-site deli with a beer and wine license and the guests love coming there for breakfast, lunch, and dinner, and it is also where we do our check-in. It comes with a complete POS system that handles everything including bookings and credit cards. In addition, the POS makes paying good old CA tax super simple. The books are current and can be audited if we enter into a purchase agreement.
All the furniture is brand new (Ikea)- there are 2 kitchens and 2 bathrooms- tons of parking and the best thing is your right on HWY 120 which is the HWY into Yosemite National Park so you get about 10-15% of your bookings walk-in the rest are online pre-bookings. The truth is this town is SUPER busy during high season and if managed properly you can easily increase your occupancy by next year to 45-50% occupancy during off-peak as that is what we had with the first hostel we opened in Groveland, CA a block away from this one. The deli averages about 6-10K per month (again with the proper management and marketing this Deli/Bar could make a lot more; it has a great reputation in town) and is super low overhead- we have 4 full-time $9/HR employees that would hopefully still be able to work there as they love it and they are great- all of them!
Let see... what else can I tell you- all in all- its a little piece of heaven. We want to escape the West Coast as we have been here all of our lives- we are looking at purchasing a Hostel else where very very soon! As soon as this one sells.
The only issue the Hostel has is it needs Fire Sprinklers- we have submitted engineered drawings to the County and have the landowners approval to install the sprinklers. If we can get someone to purchase the Hostel we will install them prior to the new owner(s) taking hold of the llc- The Hostel/Deli comes completely turn key and we would spend one month or longer if needed training and helping.
We are asking only $75K- thats just what we have into all the funiture/fixtures/equipment/lease deposits and tenant improvements. We are asking so little as we would like to make the sale quick and easy so we can move on to our new adventures! We would love to give it to someone who can take care of it and do a really good job- Groveland needed a Hostel and we would love to see it stay here (the community also loves the Hostel!) additionally, we just need out what we put in. Your ROI would happen the 1st year!!! It's priced to be a "NO Brainer" for someone looking to buy a Hostel in a ultra fab spot- I mean living 25 minutes to one of the 7 natural wonders of the world isn't so bad)
We are asking for cash upfront in full and we could drop the price to $70,000- if no cash up front we would be willing to owner fiannce with 40% down, 15% interest over 3 years with no pre-payment penalties as long as the buyers credit is OK (in this economy we do not expect it to be excellent) and has credit/trade references.
Thanks for your interest and I look forward to hearing from you,
Michelle