My wife and I, on many of our bike outings in and around Oxford, end up making a right turn onto the Strand with the Tred Avon River on our left. The images flit by: first, the Tred Avon Yacht Club, then the Oxford Ferry straight ahead, and sadly, on our right, a For Sale sign at the historic Robert Morris Inn (RMI).
I don’t pass the Inn without recalling wonderful evenings with good friends, especially in the winter with a fireplace at our back. Last winter the Inn was sporadically open and it seems unlikely that it will be open this winter. It is, of course, now for sale.
Markets for commercial real estate are dynamic. Business prospects, the cost of debt, and supply/demand factors frame pricing. I know the Inn’s sticker price, $3,600,000; beyond that, I remain uninformed about a variety of circumstances that will weigh on pricing, the availability of credit, and timing.
Without taking a deep dive into the market for similar commercial properties, I would offer up several considerations. First, I comment because the RMI is not just another hospitality business for sale. The Inn’s history helps define it; this is not a commodity property. In more ways than one, it also helps define Oxford.
I know my wife and I, while not students of Robert Morris, like to at least characterize his contributions to America’s success in the Revolutionary War. His friendship with George Washington. His financial acumen which earned him the title: “Financier of the Revolutionary War.” Inevitably we comment on the beginning of the Inn as Morris’ house in 1710. The Inn’s history transports a gathering into a special moment.
If the new owner of the Inn is to succeed, he/she will have to build back its reputation and more. This requires continuity and continuity requires some level of profit.
Unless it has a destination reputation, it will keep changing hands. The new owner will have to be given some flexibility with the underlying assets to remain in for the long term. One question: what would the “financier”, Robert Morris, require?
Profitability is not a nice to have; it is a need to have. The Inn At Little Washington is a flickering image of possibility. The RMI setting is more dramatic, but profitability requires more than eye candy.
I presume that due diligence by a prospective buyer will necessarily explore the town government’s attitude before any paperwork is finalized. In Oxford it is not unusual to see an “Applications Pending” sign. If I were a prospective buyer, I would want a streamlined approval process. When I was in the broadcasting business, the most fraught time was during a pending license transfer application period at the Federal Communications Commission (FCC). The FCC had to approve the purchase.
One other thought. Commercial and industrial development agencies in States, Counties, Cities and special districts often offer financial incentives to attract investment and good jobs. I hope Maryland, Talbot County and Oxford are similarly motivated. The Robert Morris Inn is not a crown jewel, but a colonial one well worth preserving.
Final note about the Inn’s namesake: Morris was very bullish on America’s prospects after the war. According to historians this led him to acquire a great deal of land, using debt. The assumptions of rapid growth didn’t materialize and his debt brought him to bankruptcy before bankruptcy laws. A sound business model built on sound assumptions is not optional if success is going to result.
Al Sikes is the former Chair of the Federal Communications Commission under George H.W. Bush. Al writes on themes from his book, Culture Leads Leaders Follow published by Koehler Books.
Richard Marks contributed to this column.
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