Solano-Napa SBDC
The McClelland-Priest Bed & Breakfast
“My work with the Napa Sonoma SBDC and Advisor Mike Basayne greatly assisted me in the planning process for my new business model.”
Choolwe Kalulu’s company purchased the historic McClelland-Priest mansion in downtown Napa in 2019. The property was a dated bed and breakfast in need of rehabilitation. With a completely revised business model, Choolwe Kalulu and his family are ambitiously redesigning the facility, as well as the newly acquired next door Victorian residence. The two properties will create a more functional complex to accommodate guests. When completed, the new “Inn” will provide a comfortable sense of place, with an elegant experience.
CHALLENGES:
Choolwe Kalulu knew he was entering a competitive marketplace with many options and upside potential, and he needed assistance developing and executing a business plan. He reached out to the Solano-Napa Small Business Development Center.
ACTIONS TAKEN:
Mr. Kalulu evaluated different business models with his advisor’s assistance, to develop a better understanding of the marketplace and costs. Client concluded that he needed to do an upscale remodel, and then focus on creating greater exposure and accessibility, for the former facility. When the facility is completed, Mr. Kalulu will be providing high-end concierge services and amenities to guests who are willing to pay the price points he sets. Although individual suites will be available, corporate groups will be able to rent the entire property for a night, weekend or extended period of time. Client is hoping to be ready for guests by the beginning of 2021.
The former McClelland-Priest mansion has been completely gutted, and the foundation and basement redone. Client is also remodeling the residence next door and will remove fencing and re-landscape to make movement between the two properties easier, and appear to be one property. The Inn will no longer serve breakfasts, but with a new kitchen facility, and can bring in a chef for specific guests.
RESULTS:
Kalulu obtained a $3.2MM private party loan to purchase property in 2019, and then $600M to remodel the property. He then received an additional $1.6MM in 2020 to purchase a property next door, that will serve as part of the compound. Mr. Kalulu projects receiving and utilizing an additional $1.4MM in financing by November. The dramatic extent of remodeling activities has caused him to redo his marketing approach, while putting new business expansion temporarily on hold.
