BED AND BREAKFAST BUSINESS PLAN

I. Executive Summary

Company Description

Hearthstone Inn takes its name from the property's original stone hearth and century-old masonry, signaling a blend of historic character and warm hospitality. We operate in the hospitality sector as a premier boutique bed and breakfast launching in 2026. Our core offerings are eight luxury guest units—Garden Suites, Terrace Rooms, Manor Suites, and a private Cottage—expanding to nine units by 2028, plus gourmet breakfast service and an on-site bar serving regional craft beverages. One-liner: a restored historic inn delivering modern luxury and local authenticity.

We deliver personalized stays through a professional team led by an Innkeeper and a Chef who manage reservations, guest experiences, breakfast and dinner service, bar operations, housekeeping, and grounds maintenance. We target affluent leisure travelers and couples seeking immersive local experiences within short-stay markets and weekend getaway routes. Short-term goals: open in 2026, reach 55–65% average occupancy in year one, and establish a 4.7+ guest rating. Long-term goals: reach 70–80% occupancy, add a ninth unit by 2028, and achieve sustained GOP margins comparable to upscale boutique hotels. One-liner: exceptional service and curated local experiences set us apart from impersonal chains.

Problem

Modern cultural travelers face impersonal, standardized lodging that leaves them anonymous, disconnects them from local culture, and forces them to either accept sterile service or sacrifice comfort to chase authenticity. Guests also spend significant time curating local experiences on their own instead of enjoying guided, high-quality options.

Existing options under-serve this segment: large chains offer consistency but no sense of place, while many small boutiques trade comfort and service levels for character. There is a clear need for a luxury, high-touch alternative that pairs historic charm with modern amenities and personalized hospitality.

Solution

We restore and operate an intimate historic property that combines preserved architecture with luxury service to address travelers' dissatisfaction with impersonal, standardized lodging. Guests receive personalized hospitality, concierge-style service, and place-based experiences so they feel like welcomed visitors, not anonymous customers.

Offerings include Garden Suites with private garden access, Terrace Rooms with outdoor seating, Manor Suites with elevated living spaces, a private Cottage for single-group stays, daily gourmet breakfasts, an on-site bar with regional craft beverages, curated local tours through exclusive partnerships, and concierge booking for spa treatments and local experiences.

Mission Statement

Our mission is to offer an authentic, luxurious alternative to conventional lodging by blending historic charm with highly personalized service, gourmet local food, and curated regional experiences that make every guest feel like a cherished friend. We commit to sustainable partnerships with local artisans and purveyors, uphold the highest standards of professionalism and luxury, and serve as a cornerstone of our local tourism community. We aim to set the standard for boutique hospitality in the United States.

Key Success Factors

Five focused factors drive our bed and breakfast success.

• Maintain 55.0% to 82.0% occupancy in five years
• Leverage Innkeeper and Chef expertise for high-touch service
• Execute $150,000 renovation and ongoing maintenance program
• Diversify revenue with events and bar sales
• Secure local partnerships for unique guest experiences

Financial Summary

Summary of key financial outcomes for the Executive Summary.

Financial requirements: maintain a minimum cash floor of $574,000 through ramp; breakeven targeted Jan‑2027 (13 months); investment payback in 13 months and Return on Equity of 0.43 (43%).

Outlook: profitable scale-up with EBITDA rising from $2k (2026) to $131k (2028) and strong liquidity protection.

Funding Requirements

We need capital to complete buildout, fund operations through breakeven (Jan 2027), and hold a minimum cash floor through Dec 2027.

Total funding required: USD 1,244,950 to fund buildout, operations to breakeven, and maintain a USD 574,000 cash floor.