Worth going down the ski lodge conversion rabbit hole?

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Hi All,

My partners and I have been building new construction condos around Boston since 2015.

We've recently exited a couple of projects and are looking at acquiring both long term rentals and short term rentals.

My father-in-law owns a condo in North Conway, NH in the White Mountains and so I have an affinity for this area and see a lot of potential here despite all the rumblings with regulations.

One of the best ski mountains, Bretton Woods, has very little inventory within a 15-20 minute drive in terms of places to stay other than hotels and lodges. 

There are a few nearby lodges which were built in the 70's - very dated paint / decor inside and outside the building, no modern HVAC, etc. It seems these are now marketed towards the budget friendly crowd. 

One in particular I'm looking at is one contiguous building with a shared lobby and probably around 20 or so "rooms" they rent for about 130-150$ / night depending on the season.

My question is: Does it make any sense to use our construction expertise to go in and do a complete remodel of this building - perhaps knocking down walls to make more "suites" for Air-BNB, putting in kitchens, modern amenities, nice TV / internet, hot tubs, etc? 

I'm thinking of reaching out to some local contractors to get rehab pricing - would modeling the potential post-renovation cash flow be difficult for a unique project like this?

[Mike Shemp]

@Kyle Staal

We are very familiar with the area. My wife and I have been going to the White Mountains for over 20 years, and have 2 STRs in Bartlett....and we ski at Bretton Woods all the time!

So my take on it is "it depends". I think the answer depends on the guest profile you thin will stay at your properties. For example are you looking to compete with the Mt. Washington Hotel (think they have a new name now)?  Then you'll definitely need to do a remodel.

That area is also close to Crawford Notch and Franconia which are major hiking destinations, so it may be worth it to look at it from the skiing and hiking angle too, and not just sking.  If you are specifically targetting people who ski at Bretton Woods, I think you would make sense to remodel. If you are targetting hikers mostly, and anyone who wants to stay at an affordable ski chalet, then you may not need to do a major remodeling. Luxury vinyl plank flooring and change of decor can help. If you want to go a little more, but not a total remodel then maybe put cedar shakes or the curvy barnwood planking on the outside to make them look more like cabins than old ski chalets, or do log siding. Both options would be more affordable than complete remodel but as you probably know you probably won't get the rate-per-night you would with a total remodel.

Overall I do like that area from an investment perspective because you have Cannon Mountain and Bretton Woods for sking, and plenty of hiking trails all around.

Hope that helps.

Mike