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Care for Roasted Marshmallows?
(FORTUNE Small Business) – Wyntoon Resort TRINITY LAKE, CALIF. OWNERS Henning and Marion Behrens purchased the property in 1983 FOUNDED 1965 PRICE TAG $3 million WHAT YOU GET A 70-acre campground and resort on Trinity Lake in the Northern California mountains. Rustic--but not too rustic--it offers 97 tent sites with water, 130 full-hookup RV sites, 19 cabins, a swimming pool, a 110-slip marina, 11 rental boats, a snack bar, a general store, a gas station, laundry facilities, and an apartment (where the current owners live). The customer database is also included; since return visitors account for 80% of the resort's business, you'll need it. THE COMPANY Wyntoon Resort was founded in 1965 by Harold Hodges. The current husband-and-wife owners, Henning and Marion Behrens, bought Wyntoon from Hodges in 1983 for $1.6 million, partly as an escape from their hectic Silicon Valley lives (he was an auto mechanic; she was an electrical engineer). Wyntoon borders Trinity Lake, and with 145 miles of shoreline, it's the resort's key asset. The lake attracts smallmouth-bass fishermen in late spring and windsurfers, jet-skiers, and other water-sports lovers during the summer. Visitors can bring their own boats or rent them at the resort. Located between the Costal and Cascade mountain ranges and near an award-winning winery, Wyntoon also brings in plenty of mountain bikers and wine connoisseurs during the busy summer season. The accommodations are geared toward campers, but those not thrilled with the idea of roughing it can stay in cabins that are equipped with bathrooms, kitchenettes, and air conditioning. THE NUMBERS On an average summer day the resort gets 700 visitors, and on holiday weekends you can almost bank on 1,500. With occupancy rates like that, the Behrenses say, annual revenues have climbed to around $800,000 over the past two years. The purchase price includes 50 acres that you'll own outright, plus the right to lease 20 acres of Forest Service land for about $3,500 a year. To run the place, expect to shell out some $80,000 a year for up to 15 staffers during the summer and one to six workers during the off-season. Utilities, operating supplies, and the general store's inventory accounted for another $209,000 in expenses last year. UPSIDE The new owner probably won't have to make major repairs to get the resort in ready-to-open condition. The Behrenses have spent more than $80,000 a year on key property improvements to keep visitors coming back. In the past few years they've installed a swimming pool, added new washing machines, and retiled restrooms. Plus, the resort's loyal customer base has kept revenues strong, even though the recession has hurt much of the travel industry. DOWNSIDE From June through September, just try to get the campfire songs out of your head. Expect workdays to begin at 6 A.M. and end at 11 P.M. During the off-season, however, business could stand to improve, so it will take creative marketing to lure visitors. While its out-of-the-way location may make Wyntoon an attractive rural retreat, its proximity to competitors on nearby Lake Shasta might lead to lost business. The Shasta resorts, closer to major roads and generally more popular, could draw those who prefer less rustic vacations. Camper loyalty may also pose a challenge. Since many regular visitors are on a first-name basis with the Behrenses, new owners could have a tough act to follow. --Jennifer Keeney FSB does not make any representations regarding the accuracy of information provided by the seller. Interested readers should conduct their own investigation of the business and contact Mike Johnson at United Country, 530-877-1791. |
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