Bud & Breakfast with Dérive Travel

Connie Sparrow of Derive Travel is pioneering cannabis-friendly accommodations and curated experiences for out-of-state visitors hungry to explore legal cannabis

The new year brings new opportunities, and few sectors in Michigan’s cannabis industry are as ripe for growth as cannabis tourism. On this week’s iHemp Hour, Connie Sparrow, founder of Sparrow Consulting and the new cannabis tourism venture Derive Travel, shared her vision for transforming how visitors experience legal cannabis in the Great Lakes State.

With Michigan’s adult-use cannabis sales approaching $2.5 billion annually, the state has become a destination for curious consumers from states where cannabis remains illegal. Sparrow is capitalizing on this demand by creating turnkey, educational experiences that demystify cannabis consumption while showcasing Michigan’s hospitality.

From Government Work to Cannabis Pioneer

Sparrow’s journey into cannabis was anything but planned. With a background in public administration—including federal, state, and local economic development, grants management, and healthcare licensing—she understands regulatory frameworks inside and out.

“I spent a great deal of time working with the government and decided the government did not pay me what I wanted… I happened to fall into cannabis accidentally.”

Six years ago, while writing what she thought was a grant for hops farming in Shelby, Michigan, she discovered the farmer was actually a caregiver. Recognizing the regulatory changes on the horizon, she offered to help him get licensed.

“A guy handed me five thousand dollars and said ‘go forth and conquer,’ and I’ve been in cannabis ever since.”

Today, Sparrow serves as the national compliance officer for Verts (operating in Colorado, Missouri, and soon Michigan) while running her consulting firm and launching her tourism ventures.

The Nest: Michigan’s First Cannabis Concierge Accommodation

At the heart of Derive Travel is The Nest, a cannabis-friendly accommodation in Muskegon, Michigan. But this isn’t your typical “420-friendly” Airbnb listing—it’s a fully curated, hosted experience designed to educate and immerse visitors in cannabis culture.

What Makes The Nest Different

Feature	Details
Location	15 minutes from downtown Muskegon, 20 minutes from Lake Michigan
Capacity	Sleeps 20 guests
Amenities	Half-acre fenced property, in-ground pool, themed suites
Cannabis Access	Personalized “bud bars” in rooms, communal dab bar
Experiences	Infusion chef dinners, day trips, consumption education

“This is more than just being able to consume cannabis in our accommodations. We actually are curating cannabis experiences and being able to plan and provide you easy access to licensed cannabis in the state of Michigan.”

How It Works

Guests complete a survey before booking, allowing Sparrow’s team to customize their experience. Cannabis is purchased through retail partner Novo (Northern Boulder, Colorado-based dispensary chain) via online transactions—all state-tested and fully compliant.

“Their cannabis will be delivered to them when they arrive, they’ll sign for it, they’ll go into their rooms and their paraphernalia is already set up for them—whether that’s papers, a grinder… and they’ll have the ability to design what that personal bud bar looks like.”

The property features three themed consumption rooms:

• Dab Room (for concentrates)
• Flower Room (for traditional cannabis)
• Cart Room (for vape cartridges)

Educating the “Cannabis Curious”

Perhaps most striking is the demand for education. Sparrow’s clientele aren’t experienced consumers—they’re people from illegal states who want to learn.

“People are educated but they’re also intimidated at walking into a head shop to ask somebody about how to use a dab rig. A Puffco Peak has Bluetooth for crying out loud—the paraphernalia space is pretty intimidating these days.”

Common requests from guests include:

• Learning how to use and clean a dab rig
• Understanding microdosing techniques
• Exploring cannabis as an alternative to alcohol or pharmaceuticals
• Discovering different consumption methods beyond edibles

“They want hand holding. They want to learn. They don’t understand where you can legally smoke, where you can legally consume, they don’t understand what a consumption lounge is.”

Who’s Coming to Michigan?

The inquiries tell a compelling story:

“Everybody is out of state… and it’s not Ohio or Indiana out of state—it’s Virginia, Texas, Florida, Arkansas, Mississippi. It’s southern states that aren’t legal, east of the Mississippi mostly.”

These visitors aren’t looking for a quick overnight stay. They want immersive, five-day trips with curated experiences including infusion cooking classes, day trips, and education on cannabis cultivation and processing.

The Business Model: Disrupting Short-Term Rentals

Sparrow is rapidly expanding beyond The Nest, with properties planned or in development in:

• Dowagiac (opening March 2023, unhosted)
• Kalamazoo (multiple opportunities)
• Spring Lake
• Northern Michigan

Rather than owning all properties, Derive Travel offers management and marketing services to property owners who want to tap into the cannabis tourism market without the operational complexity.

“If we do the marketing and booking and management of somebody else’s property, they can look right at me and say ‘I don’t want it to be marketed with cannabis, you can just put in the bottom of the descriptor that it’s 420 friendly.’”

Strategic Partnerships

The brand partnerships are equally innovative. Weedmaps has offered to provide customized welcome kits for each location, teaching guests how to use their platform—building brand loyalty with consumers who will eventually return to legal states when their home states legalize.

“Why wouldn’t they want to get their name in the hands of a new consumer that’s visiting a rec state when their state at home is illegal?”

Cannabash Returns: July 8, 2023

Sparrow’s flagship event, Cannabash, returns to Muskegon on July 8, 2023, with expectations of 15,000 attendees—nearly double last year’s 8,000.

“Our attendees called it a Grateful Dead parking lot meets Six Flags.”

What Worked in 2022

Last year’s event featured 56 brand booths, but Sparrow is targeting 100 brand booths for 2023. The key insight? Attendees discovered products from across Michigan they’d never seen at their local dispensaries.

“A lot of people don’t understand that the supply chain is still very regionalized. Brands that are in the U.P.—your dispensary probably is not carrying that product.”

Sponsorship Philosophy

Sparrow has restructured sponsorship tiers to encourage brands to invest in their booth experiences rather than just paying for space:

“Don’t pay me that money—go get a really cool booth and really engage your crowd. Create a smoke lounge area. These people want to experience your brand, so give them something to experience.”

Even top-tier sponsorships work out to roughly $1.20 per attendee exposure—exceptional value for direct consumer marketing in an industry where traditional advertising is severely restricted.

The Regulatory Landscape

Short-Term Rental Protections

One concern for cannabis-friendly accommodations was local zoning restrictions. However, Michigan’s legislature has pushed back on municipalities trying to limit short-term rentals:

“The state came right back and said absolutely not. They own the property, they’re allowed to use their property as they see fit in this short-term rental space.”

This protection allows Sparrow to expand confidently, including listing on platforms like RVshare for cannabis-friendly “boom docking” options.

The Pure Michigan Opportunity

While Pure Michigan hasn’t officially embraced cannabis tourism, Sparrow sees the economic argument as inevitable:

“How much money does Pure Michigan spend on tourism advertising every single year? Just in the state of Michigan—why wouldn’t I build off of that $24 million budget?”

With Muskegon County alone receiving $1.7 million from cannabis tax revenue, and each accommodation stay generating 18% in combined taxes (excise + accommodation), the economic case is compelling.

Hemp Industry Connections

The conversation touched on opportunities for the hemp community, including:

• Hemp-built accommodations: Sparrow expressed interest in developing properties using hempcrete and other hemp building materials
• CBD integration: Educational opportunities around hemp-derived products for guests exploring alternatives to THC
• Cross-industry partnerships: Connecting hemp and cannabis businesses through tourism experiences

Market Update: Consolidation Ahead

Mike Brennan of the Michigan Marijuana Report provided context on the broader market:

• 2022 sales expected around $2.5 billion in adult-use
• Wholesale prices crashed due to oversupply from “Croptober” harvest
• Retail flower prices as low as $40/ounce (black market levels)
• Industry consolidation accelerating as smaller operators struggle

“A lot of companies that had business plans that called for a certain price point—well that price point isn’t there anymore.”

However, this creates opportunities for well-positioned players and consumers alike:

“It’s a great time to be a consumer in the state of Michigan. You can walk into probably any one of our dispensaries and get an ounce for 40-50 bucks, and it’s not shake—it’s actually mid-shelf stuff.”

Additional Industry News

Google Opens CBD Advertising

Google is now allowing advertising for some CBD products on its platform, though a vetting process is required. Currently, only Epidiolex (the FDA-approved CBD medication) can advertise medicinal claims.

CRA Outreach to Municipalities

The Cannabis Regulatory Agency is hosting a Zoom summit on January 30th targeting the roughly 1,625 municipalities that haven’t yet opted into cannabis licensing. Each municipality with even one dispensary received approximately $28,000 in tax revenue sharing last year.

Hemp Building Materials Spotlight

iHemp Michigan continues its focus on hemp building materials, with flooring from Hempwood (Murray, Kentucky) featured. The flooring is:

• Harder than oak
• Comparable in price to traditional hardwood
• Available pre-stained or unstained
• Best suited for dry areas (not recommended for bathrooms without additional coating)

Get Involved

📅 Cannabash 2023

Date: July 8, 2023 Location: Muskegon, Michigan Expected Attendance: 15,000 Website: cannabashfest.com Vendor/Brand Interest: Fill out the form on the website or email Kenzie at kenzie@howtoplanmi.com

🏠 Book The Nest or Partner with Derive Travel

Website: derive-travel.com Listings: Also on Airbnb and budandbreakfast.com Contact: Connie Sparrow at connie@howtoplanmi.com Phone: 231-670-5863

📰 Cannabis Tourism Publication

Sparks and Rec – Cannabis tourism guide for Michigan Website: sparxandrec.com

Recipe of the Week: Cauliflower Hemp Soup

Perfect for cold Michigan days, this warming soup features hemp seed oil and hemp hearts.

Ingredients:

• 1 tablespoon hemp seed oil
• 2 cloves garlic
• 1 onion, diced
• 1 heart of cauliflower, diced
• 1 carton vegetable broth
• 1 tablespoon salt
• ½ cup hemp hearts
• Grated Parmesan to taste
• 1 tablespoon parsley

Full preparation instructions available at iHempMichigan.com

The convergence of cannabis tourism, hospitality innovation, and Michigan’s natural beauty creates unprecedented opportunities for entrepreneurs willing to think beyond traditional dispensary models. As Connie Sparrow demonstrates, the real value lies in education, experience, and meeting consumers where they are—curious, eager to learn, and ready to explore.

Growing the future from seeds of the past.