Who will buy an iconic Irvington B&B? A big family, investor or Airbnb booker?

Published 10:47 am Wednesday, June 10, 2020

Long before Airbnb introduced home stays, there were hotels, motels and bed-and-breakfast inns. Each had loyal fans. But loyalty is now in short supply, say B&B owners who have watched as their segment of the travel industry has gone the way of making reservations by phone.

Today, there are far fewer traditional B&Bs, in which guests reserve the same room for return visits, look forward to joining other guests at a multi-course breakfast and confer with the innkeeper before making dinner or theater reservations.

Instead, B&B owners say travelers want to compare prices and book online, use a passcode for a contactless check in, and base their itinerary on crowd-sourced Yelp reviews.

Competition from online travel agencies and services such as TripAdvisor and people renting out rooms in their home to help pay the mortgage means there’s been an increase in the number of accommodations but not necessarily out-of-towners needing lodging.

Is there a place for an old-fashioned B&B in today’s world?

Susan Lemon of Abigail’s Bed and Breakfast Inn in Ashland thinks “old fashioned” is one of the reasons some B&Bs are surviving but not thriving as they did decades ago.

Lemon can count the major flaws of what she calls “the old mom-and-pop bed and breakfast” on one hand: Doilies and knickknacks covering every surface, drab or floral bed linens, too much wallpaper, the chitter chatter of an innkeeper and the shared toilet down the hall.

Guests could add more to the list: No WI-FI, television or in-room beverage stations.

“The thought of traipsing downstairs to get coffee looking like hell on wheels in the morning is enough to put many people off,” says Lemon, who has owned Abigail’s Bed and Breakfast Inn since 2014. “Little do people realize how this beautiful industry has changed and evolved for the better over the years.”

Even before the economic, health and cultural crises caused by the coronavirus pandemic hit, B&Bs have been declining as short-term rentals have risen.

Tourist-centric Ashland once had about 70 bed-and-breakfast inns; now there are less than a dozen, according to Travel Ashland director Katharine Cato.

Many former B&Bs have become no-host, whole house rentals. For about $600 a night, a group of 10 people can book the 1892 Queen Anne-style Nunan Mansion in Jacksonville in southern Oregon’s Jackson County.

Innkeepers believe they offer luxury and personalized services that deserve higher nightly rates.

What’s missing with Airbnb-style accommodations? Innkeepers’ attention to details and knowledge of the area; food often made from scratch; and the chance to stay in a small inn where each room has its own character and bathroom.

Portland’s White House Bed & Breakfast, set in a 1910 Greek Revival mansion in the historic Irvington District, underwent a $1 million renovation after it was sold to new owners in 2018. Guests continue to make room reservations and bridal parties reserve the landscaped grounds for weddings.

Selling a ‘Labor of Love’

Lemon says B&B owners have trouble cashing out of their “labor of love” when they want to retire.

Two properties are listed for sale on the Oregon Bed and Breakfast blog: The shuttered Cornerstone Bed and Breakfast in Beaverton and the C’est la Vie Inn in Eugene.

But there are other B&Bs for sale.

The 1906 Queen Anne-style Lion and the Rose Victorian Guest House in Irvington has been on the market for more than a year.

“We started in April 2019 with an asking price of $1,995,000, which is not unreasonable in the 97212 zip code,” says Steve Unger, who has owned the double-lot property at 1503 N.E. Schuyler St. with Dustin Carsey since October 2002.

The asking price has been gradually lowered to $1,499,999.

“We have had several serious lookers to purchase for short-term rentals but there was usually some glitch that kept things from progressing,” says Unger.

A signed lease-purchase agreement that was to take effect April 1 fell through in March due to fallout from the coronavirus, he says.

The mansion, which is on the National Register of Historic Places, was built as a trophy home more than a century ago for risk-taking entrepreneur Gustav E. Freiwald.

It was converted into a rooming house during WWII and eventually became a single-family home again. In the 1970s, longtime owner George Sydnor refused offers to sell the property to developers to build apartments or offices.

Since 1993, the mansion has been a B&B with eight themed guest bedroom suites plus an owner’s residence.

What’s next?

A new owner could buy the 9,212-square-foot home fully furnished and continue to operate it as a licensed, traditional B&B.

Currently, the property’s gross revenue is $330,000 a year, says Unger. This option has the highest income potential but also the highest expenses and requires the greatest day-to-day involvement of the owners or manager, he says.

The property has a permit to hold 24 commercial meetings and events per year, he adds.

Other options are to make the Lion and the Rose an Airbnb-style private room hotel or a whole house rental, which would eliminate food expenses and reduce the amount of labor.

Or, the house, in a high-density residential zone, could be divided, once again, into separate units for rent or sale as condos, says listing agent Matthew Soukup of Fox Real Estate Group/Keller Williams Realty Portland Premiere.

There is a plan in which the house could be subdivided into up to seven units, with two on the first floor and three on the second floor. There is already an attic loft and a basement apartment with a kitchenette, bathroom and private entrance.

An accessory dwelling unit (ADU) could also be built over the existing garage.

The easiest way to sell a B&B may be offering it as a single-family home, without having to consider income, expenses and turnover figures, say experts.

Ellen Bercovitz is selling her Victorian-era B&B in South Portland because she has moved to St. Helens to be closer to family, not because bookings have dried up due to the coronavirus pandemic.

The property at 3935 S. Corbett Ave., listed at $899,900, is being marketed as a large family home or a co-housing arrangement where individuals live together or an investment supported by renters, says listing agent Timothy Manickam of eXp Realty.

Manickam says he has sold residential properties to young tech professionals who rely on roommates to cover the low-interest mortgage.

This dwelling, built in 1893, has two kitchens, seven bedrooms with ensuite bathrooms and 5,198 square feet of living space including a full basement, with a wine cellar and a separate door to the street.

“This location is perfect for the biker/no-car community that wants to commute downtown or really in any direction,” says Manickam.

Or, he adds, “Someone wanting a turnkey B&B business could buy the property.”

— Janet Eastman 5/8 503-294-4072

jeastman@oregonian.com 5/8 @janeteastman

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