Case Study Category: Hotel finance & funding

St Ives Hotel Dunoon – 1 year on

Katia and Jonathan Smith decided they wanted to run a bed and breakfast in Scotland and after researching the areas and looking at what was available they decided to purchase the St Ives Hotel in the coastal town of Dunoon.

The hotel was in a good location being close to the sea and town facilities and had been run by the owners for 33 years.  The owners decided it was time to retire which provided Katia and Jonathan a great opportunity to purchase a going concern with plenty of potential in increase the trade.

Both Katia and Kevin worked in professional roles in London and had excellent transferable skills so although they had never run a bed and breakfast before they had great interpersonal  skills and Katia had a good level of online marketing experience which was  shown in by her work with MumsNet.

We worked closely with Katia to progress the purchase and  we are pleased to say that they began trading in August 2017 since which time they have upgraded the rooms and have achieved excellent Trip Advisor reviews including a Certificate of Excellence for 2017!  A great achievement in their first year of trading.  It is definitely the place to stay if you are in Dunoon!

Visit St Ives website  https://www.stives-hotel.co.uk/

Bunkhouse in Portland

Sally Robinson and her partner Tony had worked in the hospitality trade in a variety of ski/holiday resorts and wanted to use their experience to run their own business.  They came across a niche business in Portland in Dorset which was a bunk house catering for divers who regularly visit the area and decided that this was the business they wanted.

Bunkhouse accommodation may be basic but it is a very affordable option for those looking for a comfortable but cheap place to stay.  A warm, friendly welcome after a hard day diving, climbing, sailing or walking is just what is needed when you want to relax and recover from an active day out.

The property had been run successfully by the current owner to suit her lifestyle and was not being marketed to its full potential as there was a very limited website and no social media presence.  As with many bed and breakfast businesses the trade was limited but the good news was this provided Sally and Tony with a great opportunity to buy a trading business which had the capacity to increase turnover.

The purchase did present a few challenges but by working with us at Stewart Hindley & Partners these were overcome although it did take some time!  Stewart Hindley & Partners presented trade projections which were seen as being achievable and representative of the industry.

Our unique knowledge of the hospitality trade means we are able to provide lenders with deals which are not only projection led but are realistic to the trade.  Our track record with the lenders means they can trust the information we provide them.

Sally and Tony will be widening their market from just the diving community to include climbers, walkers, sailing enthusiasts and basically anyone who wants comfortable budget accommodation.

https://www.thebunkerportland.com/

Arden House – Kingussie Scotland

It had been a long held dream of Janet & Graham to run their own bed and breakfast.  In preparation and to find out as much information as possible they signed up and attended a “How to Run a Bed and Breakfast” course run by Karen Thorne in Shropshire in the summer of 2017.

Finding out what was involved was extremely helpful and spurred them onto fulfilling their dream.  The course helped them to focus on the location and type of B&B they wanted to run.  Following the course, they joined a Facebook group for course attendees and this gave them the opportunity to meet up with a couple who have run a B&B for a number of years near to Kingussie (the area they wanted to buy in).

The property they decided to purchase was Arden House which is a lovely Highland villa style property in the attractive and popular town of Kingussie in the foothills of the Cairngorms and Monadhliath Mountain ranges.  The property has a total of 8 bedrooms; 5 en-suite letting rooms plus owner’s accommodation.

Stewart Hindley & Partners wrote and submitted a comprehensive loan proposal to two lenders who showed interest in funding the property.  The property had been successfully traded for a number of years and even though the owners wanted to retire and move closer to family they were still trading as much as possible providing a good level of turnover and profit for the business.  This really helps to show sustainable trade and if/where there may be opportunities to improve the trade going forward.

The chosen lender was not always the quickest to respond so the case did take a little longer than hoped for but as with most things the best things are worth waiting for!  Janet and Graham have now completed on the purchase and moved into Arden House on 8 March 2018.

What Janet & Graham say…

We tried initially to secure a business mortgage for Arden House ourselves but this was unsuccessful.  Not to be deterred, we recalled how on Karen’s course she had recommended going with a broker and had suggested Steward Hindley.  Following an initial email, Mike, our broker helped us to revise our business plan and put us in touch with potential lenders.  As we were new to the whole process of purchasing a B&B, the help and support given by Mike was invaluable and we managed to secure funding.  We believe that without Stewart Hindley we would never have secured the funding we needed and can’t thank Mike enough.  It still feels unreal that we now actually own Arden House and have given up the 9-5.

http://www.arden-house.info/

Beaufort House – Loch Ness Views

Glenn and Samantha came to us originally to purchase a different B&B in the region of Lochinver but they were unable to come to an agreement with the vendor so they looked for another opportunity and widened their search area.

Fort Augustus is a lovely small town more or less half way between Fort William and Inverness and is where Loch Ness, the Caledonian Canal and the River Oich meet.  It is a popular place for tourists to watch the many boats go through the canal locks as well as visiting local film locations.  The Great Glen Way passes through the town which makes it a popular destination for walkers.  A property that used to trade as a B&B but was now closed was on the market and was the ideal property for Glenn and Samantha with great views across the town and Loch.  After viewing the property, they could see the potential and spoke to us about a projection led debt application.

It is always easier to secure debt on a trading concern but due to the location and condition of this property it was definitely worth pursuing.  We spoke to some lenders to gauge their interest and found one who was fully supportive so it was full steam ahead with the application.

Glenn and Samantha were new to trade but were fully committed to their new change of lifestyle.  As Stewart Hindley & Partners are specialists in new to trade operators we were able to present a comprehensive application to the lender which we are glad to say was successful.

The only hiccup in the process was the fact that the property did not appear to be registered with the local council as a commercial property (something to bear in mind when looking at commercial property!), this was raised in the commercial valuation report and needed to be addressed by Glenn and Samantha.  Change of use was applied for and they completed on their purchase at the end of September.

Since completion Glenn and Samantha have worked hard refurbishing the rooms and now provide comfortable, modern accommodation for their guests.  Beaufort House is now open for business and is ready to welcome you.

Beaufort House

What Glenn & Samantha say..

Making the decision to give up the regular ‘9 to 5’ life in Leicestershire was the fun part – starting to wade through the extensive information and processes to make buying a B&B a reality; not so fun!

Thankfully we discovered Stewart Hindley & Partners and from there on the journey was, quite honestly, a very positive and confident one. There are few organisations who successfully combine high professional standards with sincere empathy and personality – we experienced both working with Chris and Carol; both of whom were always at the end of the phone any time to advise us, answer any questions and guide us through this process.

If you are planning to go down the route of purchasing a B&B we absolutely recommend Stewart Hindley & Partners all the way – you can’t go wrong with them! 

Samantha & Glenn

Beaufort House Bed & Breakfast, Fort Augustus

NC500 Bed & Breakfast

Edwin & Irma had many holidays in Scotland and when they decided to change their lives they chose to move from their home in the Netherlands to Stoer on the North West Coast of Scotland.

It was a big decision for them to make and they wanted to know they were making the right choice so they did a lot of local research on the area and trade in and around The Highlands and eventually found their dream property in Cruachan Lodge in Stoer, which sits directly on the fantastic North Coast 500 route and close to the town of Lochinver.

Whilst all this was happening they were also looking at their finance options and came to the conclusion that they would need help from an experienced broker.  They chose us here at Stewart Hindley & Partners to work with them and to source the best deal available for their circumstances.

We worked with Edwin & Irma for a few months looking at various property details and their accounts and gave them an unbiased opinion on their finance options.  There were lots of emails back and forth and Edwin & Irma came over to Scotland in November 2017 and viewed a number of properties, eventually deciding on Cruachan Lodge which was a former manse and had a good historical trading history.

Once their offer was accepted on Cruachan Lodge we worked with both them and the vendors to get the deal done.  Due to Edwin & Irma’s location in The Netherlands the initial bank meeting was carried out using teleconferencing which enabled the bank to carry out their due diligence and submit the case to their credit team.  The deal was eventually approved (subject to valuation) and a commercial valuation was undertaken.  There were some details which needed to be addressed post valuation and having agreed the details completion was set for 1 March 2018.

Edwin & Irma have now moved into their new home and are looking forward to welcoming guests from Easter 2018.

Cruachan Lodge has been re-named to The Green Cruachan which reflects Edwin and Irma’s commitment to green, sustainable living.  They are offering a warm welcome, comfortable luxury accommodation and a healthy vegetarian breakfast to their guests and are looking forward to welcoming  guests.

What Edwin & Irma say:

“We would like to thank Stewart, Hindley & Partners, and especially Carol for all their time, the nice telephone calls, emails. They always gave us a quick reply if we had questions, they helped us with all the figures of the B&B’s we were looking at. It was lovely and supporting to have Carol with us during our call with the RBS, all the advice, their ideas about the properties. We felt that Stewart, Hindley & Partners were there for us, for our best interest. We really felt supported and loved.  The way of contact was Professional and personal.”

https://www.thegreencruachanstoer.com/

 

Weymouth Bed & Breakfast

Melaney first contacted us after attending a bed and breakfast course in 2016 as she wanted to buy a large guest house in Margate.  We submitted a proposal to the lender and the loan was approved subject to valuation. Melaney needed to sell her house in London and we advised her to put a hold on the valuation (so she didn’t waste the money) until she had a buyer in place for her property.

It took a few months for her to find a buyer and for the sale to go through, fast forward 12 months to October 2017…

Unfortunately, the concern in Margate didn’t wait for the house sale and was sold to another buyer, so Melaney re-evaluated her options and the area she was considering. She eventually settled on Weymouth in Dorset and found a lovely bed and breakfast for sale, Channel View, which offered a traditional style seaside property with a good trading history and good accounts (always a bonus). The property is located right next to Weymouth beach with fantastic sea views and offers accommodation over four floors with 7 guest rooms. The property is Grade II listed but had been maintained to a high standard and had benefited from having recently installed modern en-suites to all rooms.

Channel View was being sold as a leasehold property with the lease being owned by Weymouth Borough Council who own most of the seafront establishments in Weymouth. This ensures the atmosphere and style of the town is maintained. Leasehold bed and breakfasts are not easily funded however Channel View had a long lease which was viewed as a virtual freehold which meant that the lender was more disposed to consider it.

The loan submission and valuation went through without much delay and Melaney has now completed on her purchase and has started the exciting journey of running her own business. It took 18 months from idea to completion and it was definitely worth it.

http://www.channelviewweymouth.co.uk/

What Melaney says….

”I think fate played a hand in which business I purchased as I am so pleased I have ended up in Weymouth at Channel View. Carol and Chris have been a wonderful support throughout the process and their advice and knowledge of the market has been invaluable. I wouldn’t have been able to approach the bank or been successful on both occasions without their help and they have been a friendly voice through such a huge life changing project.”

Relax in Cornwall

Theresa and Andrew Nicholson wanted to make a career change from Sales and Marketing into hospitality and decided Cornwall was their preferred location.  After looking at a number of properties they decided that Penvith Barns, near Looe, was the perfect property for them.

As new to trade operators they realised they would require help to raise the finance for their purchase.  What seemed a straight forward case soon turned into a more complicated one as there were a number of unexpected issues with the property and the purchase overall.

Because we specialise in hospitality we understood the requirements of the lenders and the business going forward.  The team here at Stewart Hindley & Partners, working closely with Theresa and Andrew, were able to present an achievable business case to the lenders and assisted as intermediaries with the vendor to overcome the difficulties within the purchase.

Cutting a long story short, we successfully secured the required funding, at a competitive rate and enabled Theresa and Andrew to live their dream!

What Theresa & Andrew say about us:- 

With the benefit of experience in large corporations, as well as owner run entrepreneurial environments, nothing could have prepared us for the challenges we faced in raising finance in the right structure for the purchase of Penvith Barns.

The level of hurdles we experienced for our purchase, that we could not have got around without Chris, seemed insurmountable. However his guidance and partnership along every step of the journey was invaluable.

From helping us to interview potential lenders, let alone lining them up in the first place, to cancelling holiday plans as we got closer to exchange contracts, seemed all part of the service.

The joy of Stewart Hindley & Partners is enforced by the ability to help structure our business in the most efficient way to ease our structure as we develop the business and move forward with their knowledge and experience. 

Without Stewart Hindley and Partners our dream and lifestyle change simple would not have happened and we can’t thank them enough.

http://www.penvithbarns.co.uk/

The Beaches Guest House, Scarborough

It was an aspiration of Alec and Julia to own and operate a bed and breakfast business. It is not always easy to get finance as a “new to trade operator” so they decided to use a broker.  Because Stewart Hindley & Partners specialise in the hospitality sector and understand the needs of all parties involved they decided to work with us to secure their perfect property.

The property was The Beaches Guest House in Scarborough which had been operated on a limited basis as the current owners were looking to focus on other businesses they owned. This presented an ideal opportunity for Alec & Julia to purchase a going concern with lots of potential to increase the trade and give them the lifestyle they aspired to.  Because of the limited trading of the concern we had provided a comprehensive debt proposal which showed that the expansion of the trade was viable as well as providing realistic projections for the business.  This was backed up with local statistics and re-profiled Profit & Loss accounts for the current trade.  By presenting the information in a way that the lender can easily process it, it gives the lender a clear “picture” of current and future trading and our clients the best possible chance of getting the loan they require.

The Beaches is a 7 bedroomed guest house which is located close to the North Bay area of Scarborough. It is an idea location to visit the popular, award winning Peasholm Park and is around a 5 minute walk to the North Bay, and 20 minute walk from the main harbour and beach area.

From March 2016 Alec and Julia will be providing a warm welcome to guests. Look out for future innovations at The Beaches, Julia is a qualified Art teacher and will be offering courses to guests and locals over the quieter winter months.

A quote from Julia and Alec:-

“After deciding that now was the time to make the change and do something for ourselves, and making sure the numbers added up we set about trying to get a commercial mortgage.

 Our first port of call was our long term “regular” bank who were less than useless, as we found were other higher profile  lenders!  Determined to not be put off by it, we searched the internet and Stewart Hindley & Partners were there.  After an initial chat with Carol the ball quickly started to roll, and, after 2 months here we are eagerly awaiting the keys to our new lives!

Carol was a joy to deal with and always at the end of a phone or an email, and Chris provided very insightful tips and information throughout.

We wish to thank them for all the help and information they’ve put our way.”

http://www.thebeachesscarborough.co.uk

 

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