“Our unique, affordable, diverse, and creative accommodations allow guests an opportunity to spend quality, wholesome time with family, friends and business associates. Memorable experiences add wonderful variety to life. Our values and vision compel us to stay at the leading edge of technological advancements in customer service, building design, maintenance, and scheduling in order to enhance the Noah’s experience for all our customers, employees, and investors.” — William “Bil” Bowser (Founder, Senior Executive)
The small event and conference industry as it exists today is a “Mom and Pop” industry without product consistency. Noah Corporation believes it can consolidate this industry much like other industries, such as Home Depot with the hardware industry, have consolidated their respective markets. Noah’s has found the small meeting and event business to be recession-resistant because the services they offer cater to one-time life events or necessary business events where their clients simply find the necessary resources to fulfill their needs.
Noah’s now has, and will continue to have, a competitive advantage over the marketplace because they simply do not try to support more than their core business, which is the rental of facility time as needed by their patrons. Noah’s does not have food service, as they allow their users to choose their cuisine, decorations, beverages and outside entertainment. This strategy allows them to partner with local entrepreneurs in order to provide the level of event services patrons envision. This strategy has also proven remarkably effective in turning those same partnering talents into a tremendous marketing force for Noah’s. Noah’s is further unrestricted by the noise and service limitations associated with hotels and one-off reception halls.
Noah Corporation has demonstrated their ability to examine and modify their business to achieve maximum profitability. They have demonstrated their ability to build, market and pre-book events. Noah’s business is largely absent of accounts receivable. Reservations are generally paid in advance with less than 6% of their current sales as a receivable. Their business is also absent traditional inventory. Noah’s anticipates revenues to well exceed the debt service and operating cost with their breakeven well below their currently operating occupancy levels.
Noah’s has committed to lease the property for an initial term of 20 years. During the initial term of the lease, the base rent shall increase by 2% each year. The lease also includes two options to extend the lease for a period of 10 years each. One of the many appealing aspects of this lease is that Noah’s pays directly all of the taxes, insurance premiums and all of the maintenance costs of the building. Therefore, the property co-owners have no active management duties, rendering this triple-net lease property a passive, hasslefree, real estate investment.