**WELLNESS WEEKENDS LLC Part 3 of 5**
**THE VISION**
As we approach our third anniversary of owning the property that we call Bliss Island, and running its operating company Bliss Island LLC, our team has dreamt up a new and exciting way to reinvent and utilize the property moving forward. But first, let’s review the results of the last three years so we can quantify whether we have the experience to lead such a vision.
As previously mentioned, Lori and I bought a property with 3.5 oceanfront acres on the cliffs of the beautiful Hamakua Coast on the Big Island of Hawaii in August of 2020. Further, we bought the assets of an operating company utilizing the property, called the Palms Cliff House. This company ran a Bed & Breakfast on the property for 25 years.
Accommodations wise, the property has a four-bedroom main house with an eight-bedroom hotel, a large barn, a koi pond and football fields of grass. The property won best B&B on the island for ten consecutive years. It generated about $300,000 to $400,000 per year and was profitable most years. We paid $2.9 for the property and about a $60k for the assets of the business.
Despite the prior owner’s success running a solid Bed & Breakfast, the couple operating the business became exhausted and desired retirement. The primary reason for their exhaustion was that they chose a business model that required being open 365 days per year. It was quite the grind. They were beautiful souls, but they both the pressure had taken its toll!
I came along at the perfect time, looking for an asset that I could run my retreats at and live. My plans were different than theirs. I was not looking for a grind. The opposite in fact.
First and foremost, I was looking for a property that would greatly appreciate. This is always goal one for me now.
Second, I was looking for a magical property to become home to my retreats. At my retreats, I get to do things that bring me great joy. I get to inspire and mentor people. I host lovely events, eat & drink really well, have stimulating conversations with new and old friends. I get to take people on fun excursions off-property. I surmised that twelve retreats per year would be just enough to service the debt and retain a qualify staff. I believe that I have become highly skilled at putting retreats on.
Third, I was looking for a second home. My wife and I were simultaneously looking for a primary residence in a state that did not have income taxes (we settled on Florida after a brief stint in Texas). The property checked all but one of my boxes for an exceptional home and retreat center. It needed a pool! But, with ocean swimming just a short drive away, I figured this could wait.
How did it go? This August will mark the completion of our third year. To date, we have hosted thirty-six wonderful retreats at an average price of $35,000 per retreat. We have six more retreats on the books to finish out this year, so forty total in three years. The lion’s share of our customers would tell you it was the most transformational week of their lives.
We have recruited an excellent team with zero employee attrition in one of the most worker transient places in the United States. I am very proud of this fact. Our team is one of our greatest strengths. We are all heart and are experts at our various crafts.
Financially, our operating company generated $1,200,000 in revenue. To become profitable, we would only need to add two or three additional retreats per year. I haven’t had a big need to dial up our retreat count though, since I benefit from living there and I prefer to host one per month.
The day I moved in, I hired an architect to design a gorgeous pool and begin the approval process. It took eighteen months, but when the County of Hawai’i finally approved our plans, I looked into getting a loan to build it. This required a new appraisal.
The asset has performed beyond expectations. When we first bought the property, it appraised at $2.95 mm although we paid just $2.9 mm. Last February, it appraised for $5.1 mm. That’s a whopping $2.2 mm gain and 75% return on investment in just two years! Our timing was, once again, exceptional. Further, our retreat business model worked nicely with the property. In all honestly, it felt like the Fox Theatre all over again, only this time with far less grind and far more rainbows!
Now, I fully realize that this is just profit on paper. To realize the gains, we would actually have to sell it. But, we are not ready to do that just yet, because we believe this property has a LOT more appreciation left in it AND we are still enjoying it tremendously.
The big opportunity we see is to transform the property and our talents into something that will have an even greater impact on our customers, employees, and investors. While we will continue to host retreats from time-to-time, we want to shift our primary focus to utilize the property as a year-round Wellness Center with overnight stays on weekends.
In running so many retreats over the past three years, our staff has gained tons of experience delivering awesome overnight experiences for guests. We believe that with a couple of strategic equipment additions, and excellent protocols created by our wellness expert partners, we can transform this property into an outstanding Wellness Center.
Note: The photo pictured below is the pool at the wonderful Mauna Lani Resort on our island. I asked our architect to design our pool to look very similar as I love its lay out so much Can't wait to build it!
