Ian & Rena Watson relocated back to Scotland from Bermuda with the aim of capitalising on their previous experience as hotel owners and operators in Scotland by purchasing another concern.
After viewing several hotels that met their requirements they offered on the Cullen Bay Hotel in Moray. This concern offered the Watsons the opportunity to develop the trades, particularly Weddings and Functions.
The objectives were:
- To secure debt on the best hotel loan terms based on Ian and Rena being proven hotel operators, returning to the trade
- To secured the hotel finance within a 6 week period, in order to meet a completion date in time to capture the lucrative summer trading period.
Stewart Hindley & Partners:
- Carried out an in-depth analysis of the trading accounts for the concern going back over three years
- Compiled a three year profit and loss forecast and comprehensive business plan
- Made a submission to the commercial property lenders based on:
The Governments Funding for Lending Scheme
A standard variable rate hotel loan term, that met the lenders debt service criteria
Stewart Hindley & Partners set of adjusted vendors accounts restating the actual trading profit.
- Hotel loan offers were secured from two commercial property lenders with one offering 2% cash back from Governments Funding for Lending Scheme notwithstanding advantageous rates and terms for the period of the loan.
- This enabled the Watsons to complete their purchase within the stated time frame, allowing them to:
- Meet the vendor’s target completion date, as well as
- To take advantage of the lucrative summer trading period.
“Stewart Hindley & Partners worked tirelessly to ensure that our tight timescales were met despite the difficulties of the overall conveyancing process and the lenders security requirements.
“They kept us fully informed throughout the entire process and dealt with every aspect of the transaction, which included the valuation report and agreement of the goodwill and fixtures and fittings apportionment. This, in itself was complex and required a full and comprehensive understanding of taxation and allowances to ensure our best interests were met”.
Ian & Rena Watson
Cullen Bay Hotel