Whether rain or shine, we love the seaside and in the UK, we’re fortunate to possess some real gems; the kinds of charming, stunning and exciting spots that attract scores of holidaymakers to B&Bs and guest houses by the coast.
We asked you what your favourite British seaside destinations were and here are your answers:
- The average size UK hotel is in the region of 16 rooms; London has by far the most rooms but by no means the most hotels
- Just over half of the total number of hotels in the UK remain in independent hands
- The growth of branded hotels, and the development of franchising is setting the pace for the rest of the industry to follow
- The growth of branded hotels is a real threat to the independent sector
- The market for short (1-3 nights) holidays is bigger than that of the long holidays
- London attracts over half of all overseas visitor spend but the South West attracts the biggest domestic visitor spend
- Outside London, the domestic leisure and business market is critical to the success of any hotel
- Clearly define your market sectors and focus on developing them
- People are now booking more and more on-line and are hugely influenced by social media
- the independent hotelier’s USP is his/her personality and personal attention to hotel guests and its activities
Source: How to Buy and Manage Your Own Hotel (ISBN: 978-1-910158-22-7)
So you think you want to own a hotel, where do you start? Initially you need to decide what type of hotel you want. Should it be located in the countryside or within a town? You need to be able to be interested in and connect with your surroundings, there is no point in buying a hotel that is located in an area where water sports (for example) are the main interest of the clientele if you have no interest in or knowledge of what people enjoy about the sports and local area.
Before you take the plunge – Ten Points to Consider
- Never forget a hotel is a very public place – it’s not like running a large home
- Remember – you are on your own – any help you need has to be brought (and bought) in
- Decide, first, on the type of business you want
- Decide on the location
- Confirm why you want to buy a hotel
- Remember, a hotel imposes great restrictions on your domestic and family life
- Obtain some experience by working in a hotel for a while
- Decide who will be in control – you alone, your partner, your partners?
- Understand the basic economics of managing a hotel before you begin your search
- The search for your dream hotel is likely to be long and frustrating
(Source: How to Buy & Manage Your Own Hotel – ISBN: 978-1-910158-22-7)
Many people when thinking of retirement decide to operate their business at a reduced level before selling it. This is not something we would recommend if you want to get the best price for your business. When valuing a business the valuers and lenders will look at the last three years of trading accounts and if turnover has been reducing it represents a business in decline rather than a viable concern. Valuers and lenders will consider the bricks and mortar value of the concern and then add on the value of the business to come to a market valuation.
If you can continue to trade your business to its potential you will achieve the best possible valuation for it which in turn gives you the best chance of achieving your guide price. We have had several cases where clients have been wanting to buy a concern but have had difficulty in raising the finance due to the trading figures, lenders are aware that a lot of people deliberately trade under the VAT threshold and will take this into consideration when looking at borderline deals.
If you are thinking of selling your business please call us to discuss how we can help you. We can in some instances arrange a line of credit for your potential purchasers.
In this article, leading hospitality finance advisors, Stewart Hindley & Partners have put together a checklist of signs that your business would benefit from seeking professional finance advice.
Residential mortgages are not available for purchasing a business which means; if you are looking to purchase a property to run as a hospitality business you will need a commercial mortgage.
Some guesthouse owners start out full of enthusiasm and optimism, but struggle when they find that their bills are higher than they expected, that the working hours are longer than expected and that key aspects of health and safety policy have been overlooked. Whether you are running a guesthouse or a large hotel, focusing on business planning should be your first consideration.
Running a B&B can be hard work, with early mornings and never-ending piles of washing to deal with. They key is to prepare well before you set the wheels in motion in order to save yourself time, money and energy. With the proper care and attention, running a B&B can be satisfying, profitable and a great life style choice.
Youâ€™ve considered everything you can think of to save your business, but your creditors keep pressing and there is no immediate way of keeping them satisfied. If this is the case, now would be a good time to get in touch with a firm of experienced business recovery specialists, who will be able to advise you on the various insolvency options available to you.
Is your business suffering financial difficulties? It may be tempting to bury your head in the sand and hope the problem goes away, however, doing so is likely to make matters worse. The best approach is to take immediate action and to consider the various funding options available. Whether your main problem is tax arrears, creditors or a temporary cash flow difficulties, whilst these are very challenging circumstances more often than not it is possible to keep your business trading and importantly solvent.