The House of Salt is a beautifully appointed seaside inn that allows guests and event planners to enjoy a perfect environment for fine food and drinks, get-aways, parties, and receptions with postcard views of Provincetown, Massachusetts and historic Cape Cod.
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Statement of Purpose
The House of Salt & Such is a specially cultivated destination for adventurous seekers of relaxation, food, art, and all things Cape Cod. The Hosts will bring together their passions for good food, drink, and entertainment by creating a warm and unforgettable experience that shows firsthand what excellence in modern hospitality can be.
The House experience will be customized to each guest and will change depending on the guests’ intentions, desires, and interests. Above all, it will be provocative by staying true to the fun-spirited community and culture of Provincetown, Massachusetts.
The intent of The House is to enrich the lives of the guests (and staff) by bringing a fresh idea to the market. A business that generates profit, creates sustainable modern hospitality, and supports artistic creation by offering a unique place to lodge, dine, and host events. In turn, this creates a successful inn which is both economically and environmentally sustainable.
The House of Salt & Such has two potential locations, each a current inn in Provincetown:
178 Bradford Street
Built c. 1820; 8BD/9BA
12 Center Street
Built c. 1850; 9BD/8BA
Provincetown was chosen for the location of the business based on several factors. Primarily because it is the premier East Coast destination for LGBTQ travelers and secondarily, by the numerous coast-seeking travelers intrigued by art and food.
Tourism in Provincetown is a $200M a year industry and this figure is rising year-over-year. It is also the most popular destination on Cape Cod, attracting tourism with its abundance of cultural and nature-focused recreational activities.
Green tourism is a growing phenomenon in the industry (in Provincetown and beyond) and this aligns with the goals of The House to be a green-living, sustainable, and community-driven business.
The historical locale will help in the promotion and branding of the inn. The hosts have a passion for history and how it can apply to the modern guest. They will utilize their historical knowledge to help build destination packages in both peak and off-peak seasons. These packages will help tie The House strongly to the community. Annual celebrations include: Patriot’s Day Weekend, Year Rounders Festival, Moby-Dick Marathon, Run to the Top of the Pilgrim Monument, Twenty Summers at Hawthorne Barn, Provincetown Portuguese Festival and Blessing of the Fleet, The Great Provincetown Schooner Regatta, Annual Provincetown Tennessee Williams Theater Festival, and others.
In addition, The House will participate in the many Provincetown LGBTQ activites throughout the year, which will bolster promotion and branding for the inn. These include: Snowbound Leather Weekend, Out of Hibernation Ursamen, Miss Gay Mass USofA, Gays for Patsy Annual Stomp, Cabaret Fest, Bear Week in Provincetown, Annual White Party, and others.
There are several key legal considerations that will be addressed by counsel, and the hosts of The House of Salt & Such are considering their options. The first is the legal structure of the business. Counsel will determine after careful analysis whether the property should be set up as a limited liability corporation (LLC) or a partnership, for the purpose of the business plan we will assume LLC.
Due to the importance of this legal decision, prudence is necessary as there are tax and liability advantages and disadvantages to both. The decision will be made after financing is secured and the offer is accepted by the seller for the chosen property.
The proposal shall be: The House will be formed
under two separate entities. One LLC will be formed and will hold the property, and the second LLC will be formed as the management operating company. The property management LLC will utilize a Small Business Association 504 (SBA 504) loan. The terms defined are 20 year fixed value with 20% down payment. The House is seeking a business partner to provide funding to aid in purchasing the property, provide working capital, and fund capital improvements to the existing structure that are needed to attract guests fitting to our market targets. The investor will be re-paid over four points in time using a management buyout process. This will be further defined in the budget section.