Owners Support Vintage Inns

The days of settling down to run a little bed and breakfast in Bob Newhart fashion faded away in recent years as the economy struggled and travelers sought getaways in shiny new hotels.

That shift in travel hasn’t dampened the spirits of local hospitality providers who still serve up their own slices of Americana one day at a time.

Don and Jennie Wallace embody a new breed of inn keepers. These savvy business minds own and operate the Laughlin House Bed and Breakfast in downtown Bentonville while also working full-time jobs in corporate retail.

Drs. William and Carol Kendrick of Springdale bought Magnolia Gardens in 2000 with a unique vision for the historical grounds. The Kendricks live adjacent to the eight-acre spread and still workin the medical field. Unlike most inn owners, they don’t run the day-to-day operations at Magnolia Gardens.

“It’s a pretty big job overseeing and marketing the venue,” said Patrick Bogart, director of operations for Magnolia Gardens. He and event coordinator, Liz Willhelm, came onboard about a year ago in an effort to restructure theoutdated business model.

The traditional bed and breakfast model made popular in the 1970s and 1980s provided energetic couples an opportunity run a home-based business venture in lieu of other full-time employment.

That isn’t the case today.

Local venue owners say renting rooms by the night is a tough business by itself, prompting more owners to juggle multiple jobs.

“It’s definitely a specialty business hard to sustain on its own,” said Larry Brian, director for the Small Business Development and Technology Center at the University of Arkansas. “I am not surprised to see local owners tweaking the standard model to fit a slower economy and changing hospitality demographic.

“I have a good friend who ran a successful bed and breakfast located in the Smoky Mountains for about 15 years. He had little time to do anything else because itwas a heavy tourist area year round. My friend recently sold his business and embarked on an extended cross-country vacation.”

Sam Feldman, treasurer for Arkansas Bed and Breakfast Association, said five to seven years is the typical life cycle for most active owners.

“Running a bed and breakfast is more than a business, it’s a lifestyle. Inn keepers typically put their own lives on hold to be there for their guests’ needs,” Feldman said.

She and husband Jeff own Bridgeford House in Eureka Springs. This is their ninth year of business and while neither work another job at this time, she said it has been necessary in the past as a result of reduced tourism.

Brian said there are some tax advantages to owning a home-based business like a bed and breakfast. Home-business deductions can be used tooffset income. But he said adequate cash flow and steady income can be hard to come by unless the venue stays booked reg ularly throughout the year.

“That can make selling a business tough,” Brian said.

There are 47 bed and breakfast inns listed on the state association website. Roughly one in four across the state is for sale, according to the site.

The hardest hit region is Eureka Springs, where half of the 13 bed and breakfast properties are listed for sale.

Feldman said the majority of those owners are moving past seven years and are likely ready to pick up their lives elsewhere. She said the economy remains challenging for small businesses that rely on tourism.

The Arkansas Parks and Tourism Department reported a 15. 5 percent drop in the number of tourists to Eureka Springs and Carroll County between 2005 and 2010. Total tourism dollars spent in the five-year span declined to $165 million from $176 million.

In contrast, Hot Springs and Garland County reported a 10 percent gain in tourism dollars during the same time period, according to state tourism records.

Brian said unless there is a substantial book of business to pass along to new owners, a bed and breakfast sale would basically just be a typical home sale.

Feldman said she previously listed Bridgeford House for sale, but she pulled the business oft the market earlier this year for some interior updating.

“We have decided to stay on and put the business back on the market when the economy improves,” Feldman said.

Laughlin Luck

Running a bed and breakfast successfully requires lots of hard work and luck doesn’t hurt, according to Jennie Wallace.

“We used to live nearby and loved the neighborhood. When this awesome home came up for sale in the summer of 2010 we bought it. Once inside, I knew it was perfect for a small bed and breakfast,” Wallace said. “We just figured we would try and make it work, at the very least we have a great house to live in.”

The Laughlin House has a rich history. It served as a boarding house and eatery in the early 20th century where Phoebe Laughlin served lunch to workers and patrons in downtown Bentonville.

“We knew that the location was superb, just a block or so from Crystal Bridges and, one day, the Benton County Walton Arts Center. The experience has been incredible,” she said.

The couple reported a smattering of weekend business once they opened in July. But since the debut of Crystal Bridges, Wallace reports steady traffic, including an upcoming reservation for a museum curator visiting from the Northeast. Laughlin House was recently mentioned in a New York Times article about downtown Bentonville.

So far the bed and breakfast has three rooms available for rent. The owners live upstairs for now and hope to eventually convert those quarters to a penthouse fl at.

“There is adequate space above the garage that will eventually become our living quarters,” Wallace said.

The couple each work demanding jobs, but so far a little luck and good planning has allowed them to juggle their duties as inn keeper and chef for the paying guests.

“Don is a great cook and he usually goes into the offce early and runs home in time to make breakfast for our guests as needed. Iam fortunate to work from home most of the time,” Wallace said.

At some point in the future, Wallace said either she or her husband would like to be able to focus entirely on the bed and breakfast, but until then they will share the duties as needed and rely heavily on the Internet for marketing and bookings.

County records show the Wallaces purchased the Laughlin House for $285,000 in 2010. The home was valued at $305,000 this year.

Magnolias And More

Dr. William Kendrick spent Valentine’s Day at Magnolia Gardens in Springdale with his wife Carol in 1997. In a quiet hour of prayer and meditation that evening Kendrick said he felt a strong urge to buy the stately venue.

“The next morning I went downstairs for breakfast and the owner, unprompted by me, told me that he hoped to sell the place,” Kendricksaid. “I made an ofter, but he sold to someone else who tried to run the venue as a restaurant and small inn.”

After three years and a substantial investment in the property, Kendrick said the previous owner walked into the real estate office requesting an auction for the property.

“The agent pulled my name out of a folder and called me. I bought the property in 2000 with a vision to run a ministry from here someday,” Kendrick said.

County records indicate Kendrick paid $450,000 for the eight-acre estate, which included the historic bed and breakfast built in 1883. It was originally the home of Judge Millard Berry. The property remained with the extended Berry family until 1991.

Between 2000 and 2008, Kendrick said the bed and breakfast survived financially because Magnolia Gardens was viewed as an event center for weddings, family reunions and corporate retreats.

Bogart said the venue is still used most by locals for parties and special events, where the entire 10-room bed and breakfast is rented for overnight guests.

In 2010, Kendrick built a large ballroom with floorto-ceiling windows on three sides that display a vast courtyard with towering magnolia trees.

“We decided to make the investment to allow for year-round events. While our gardens are beautiful, we didn’t have a contingency plan if it rained or snowed,” Kendrick said.

He admits the venue has struggled as a business, but said his vision for the ministry is alive and well.

“We are now set up to ofter a respite for religious retreats and workshops,” Kendrick said. “I love to see the grounds used for this purpose.”