Hermann Bauer, Max Parcells, and Chad McMillen, all from Texas, have organized under Pipestone Lodging, LLC, as the new operators and future owners. Parcells and Bauer with Bauer’s 10-year-old son, Alex, arrived in Pipestone last Thursday for the signing of the lease agreement.
“It’s bittersweet,” said Vanda Smrkovski, owner and former operator, following the signing. “I feel a little bit stripped of my identity I’ve acquired here over the past three years. It’s a huge burden off my shoulders but it’s not done yet until final transfer of ownership takes place.”
The three men wanted the lease arrangement to capitalize on the busy summer season until the final sale took place. That’s expected within the next few weeks, though the lease agreement allows for six months “just in case anything happens,” Smrkovski said.
The Bauers and Parcells had driven up from Texas on Thursday and by Friday morning had gained operational control of the 38-room hotel on the eve of Pipestone’s busy Watertower Festival weekend. Given the circumstances, they had limited availability for conversation last week, but said they intended to hold a Grand Reopening celebration in about six weeks. Renovations are likely in their future plans for the historic property: Bauer said he didn’t want to have a photo taken near the front desk because they intended to move the front desk.
Bauer is the president and founder of Hospitality Solutions, Inc., a hotel management company. The company provides a menu of hotel services, including pre-opening services, hotel management, reporting and property management, renovation and re-positioning, and lender services. According to the company’s website, Bauer has over 25 years experience in the hotel industry and is an experienced franchise operator, having managed over a hundred hotels throughout the U.S. in various capacities.
Harvey Youngberg, the Century 21 broker out of Yankton who brokered the deal, was sitting in the Calumet lobby awaiting the arrival of the men last Thursday. Youngberg originally sold the property to the Smrkovski family. He said a full-service hotel is not as easy to sell as a limited service property.
“Limited services are a lot easier to sell because,” he swept his hand through the air motioning to his surroundings, “this is a lot of work to own. You’ve got food and beverage and a lot of help.”
Still, the property has not been overly difficult to move.
“It’s historic; people are interested in that kind of thing,” he said. “It’s in excellent shape. Vanda has done a great job of fixing the air conditioning and heating. It’s clean, the food’s good and everything works.”
As for Smrkovski, she’s in Pipestone staying with a friend and will remain until the sale takes place.
“I’m completely committed to helping these guys out in the meantime,” she said. “They know the business inside and out; they’ve been in the business for 25 years. Unfortunately, I’m the only one who knows the building inside and out and all the nooks and crannies. And I know the customers, and all their nooks and crannies and quirks.
“I don’t think you’re really in the food or hotel business here you’re really in the people business so I’m here to help them get ingratiated smoothly.”
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