Flag House Inn
Offered for sale at $2,400,000
The Flag House Inn, located in downtown Annapolis MD, is the #1 rated small hospitality property in Annapolis. It has a prime location directly across from the US Naval Academy, which draws many guests from parents and alumni for visits. City Dock, the center of Annapolis, is only 2 blocks away, and all of the attractions of downtown Annapolis are only a short walk, making us an attractive location for all guests.
In March 2022, The Flag House Inn was named a Select Registry Distinguished Inn, a rare and special appointment limited to only ~270 properties in the US. All Select Registry properties must pass a comprehensive review of their business and operations.
The Inn has parking to accommodate all 6 guest rooms, which is a huge differentiator to most other lodging properties, that either have paid garages or valet/shuttles for parking. It's even more valuable as of May 2022, as the city has closed the downtown parking garage for a rebuild which will take 12-14 months.
The Inn has near perfect guest reviews, with a 5.0 Google (250+ reviews) and #1 rating in Trip Advisor with 820+ reviews. The current owners have completely modernized the whole operation, with aggressive marketing, professional photography, responsive and fast web site, and deep supportive analytics, all run in the cloud.
Business results have been massively improved the last 4 years, funding a complete modernization of the property, including furnace, hot water heaters, washer/dryer stacks, roof recoating, painting, adding a 6th room licensed with the city, expanded parking space and much more. Financially, the Inn has been transformed from “lifestyle” to “financially viable”, with an attractive resulting cap rate. All details on occupancy, ADR, recent investments and financials are available upon execution of NDA. 3% commission offered to buyer's agent. Contact the owners to start the process!
The owners quarters are spacious, with two full floors on one side of the duplex, with a living room/office, dining room, modern kitchen (which supports the guests breakfast service) and double sided fireplace. On second floor is sitting room, walk in closet, master bathroom and bedroom suite. In addition, there are two waterproof/dry basements, and a 2 car garage and shed. Everything can be locked off. There is also a single room on first floor with full bathroom which offers potential for growth in rooms/revenue, the owners currently use this for family and Naval Academy midshipmen (students) that they sponsor.
The rooms in the main house all feature king beds and private bathrooms, each with unique decorating, varying between traditional/Victorian feel and contemporary. The 6th room over the garage was recently renovated and licensed with the city, features a queen bed, new mini split and dedicated wi-fi. On the first floor guest side, we have a large sitting room, dining room and butler’s pantry with fridge, microwave and Keurig.
Annapolis is a popular destination year round, with the Naval Academy (4200 students), St John’s College (400 students), state capital, sailing center/gateway to the Chesapeake Bay and wedding/event destination. Guests typically stay 2-3 nights. There are numerous tourist activities between sailing, boating, museums, shopping and a broad array of excellent restaurants. It’s only 45 minutes to downtown DC, and an hour to St Michael’s on the Eastern shore. The city is about to start a 2 year transformation with a rebuild of the central parking garage and city dock space, all attractions will continue to operate normally and the end result will provide a world class downtown experience.
May 22 Update: YTD results are running significantly ahead of 2021's record results, both for actual results and full year bookings. Cap rate on 21-22 results in excess of 10%
- 6 Guest Rooms
- 6 Guest Room Baths
- Has Owner's Quarters
- Built in 1879
- Last Renovated in 2021
- Opened in 1992
- Building is 4,360 SQFT
- Lot is 0.14 Acres
- Photo Gallery
- Property Website
- Offered for sale at $2,400,000
- Occupancy Rate: Available with NDA
- Average Daily Rate: Available with NDA
- Terms: 10 year P&L available with NDA, along with detailed list of past investments and 2022 forecast - Booking pace very strong