Category Archives: Case Studies

Morwenden House

A Bed & Breakfast with Doggy Day Care in Wales

Our client Kate found a beautiful bed and breakfast in Mid/North Wales located just outside the popular holiday destination of Barmouth and is situated right next to the beach.

Morwendon House has been a bed and breakfast for a number of years and the owners decided it was time to retire which provided a perfect opportunity for Kate to purchase a going concern but one which she could put her own stamp on and develop the trade going forward.

Kate has never run a bed and breakfast before and in order to understand the undertaking she was about to make she decided to attend a B&B course.  The course is run by Karen Thorne, who has over 10 years’ experience in owning and operating a B&B, and offers a good insight to what is required to be a successful B&B owner. 

The case should have been straight forward but, as sometimes happens, there were a few hiccups on the way.   Needless to say, this was a very stressful time for Kate but as her broker Stewart Hindley & Partners were able to negotiate on her behalf with the lender, valuer and vendors Eventually everyone was in agreement and the purchase could move forward.  Kate completed her purchase at the end Nov 2016 and is now open for business!  

Morwendon House will be offering a unique service as part of the B&B – Doggy Day Care! 

When guests are on holiday there are often some attractions who do not allow dogs which restricts the enjoyment of the holiday.  By offering Doggy Day Care guests can pay a small charge and have their dog looked after while they visit locations they otherwise would be unable to.  A win win situation for everyone!

What Kate thinks….

“My journey into the world of becoming a B&B owner began in early 2016. I found the most beautiful house in an idyllic location which seemed affordable.

I approached my own bank and a broker who was recommended to me, all initial enquiries seemed positive but it soon became apparent this was not going to be an easy ride. My bank having initially been positive said no and the broker didn’t fill me with confidence either so I turned to the internet for some research.

I discovered a couple of articles of interest to me. One was on a B&B owner, Karen Thorne, who runs B&B courses for beginners. The other was on a company who specialised in hospitality businesses finance, enter Chris and Carol at Stewart Hindley.

From my first conversation with Chris I was filled with a renewed confidence. Not only did he know his business he knew the area I was looking to buy in too. 

As this was all new to me I did advise Chris I would need “hand holding” through the process. What could have been a relatively straightforward purchase turned out to be anything but. The difficulties we faced gaining the finance I required were testing to say the least. Chris remained supportive and diligently professional throughout. I never at any point lost my confidence in him and the ability to get the deal over the line.

I have to say the whole experience was incredibly tense and stressful but without Chris and the team I doubt I would have been able to realise my dream.

On 20th November 2016 I finally completed on Morwendon House, two month in I couldn’t be happier.

I can highly recommend the team at Steward Hindley, a lucky find for me on the internet.”

For availability and room rates visit the  Morwendon House website

Scottish B&B - Ivybank Lodge

Scottish B&B – A Great Opportunity With Challenging Trade

Gary Hack and Nigel Robinson decided they wanted to run their own Guest House business and started to look for a suitable property. They had no idea how difficult it would be.   After looking at a number of properties, they eventually found, and fell in love with, Ivybank Guest House in Blairgowrie, Perthshire.

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A Great Hotel in Hexham

Roger and Magdalena Davy were used to running a successful, busy gastro pub in the popular area of Richmond in Surrey.  After building up the trade and obtaining excellent Trip Advisor reviews they decided they wanted to move onto a new challenge.

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Securing finance for lovely bed and breakfast in Wales

Tir-y-Coed, Rowen, North Wales

Chris and Sandra decided that they wanted to run their own bed and breakfast business and set about looking for a suitable business to buy.  After looking at several properties they eventually came upon Tir-y-Coed in North Wales.  Chris, who has a background in finance, recognised the challenges involved in securing the debt required and approached us here at Stewart Hindley & Partners to help them.

We worked closely with Chris, Sandra and the lender to secure the property.  Stewart Hindley & Partners produced a comprehensive loan proposal detailing the historic trade of the bed and breakfast, future plans for the trading going forward and projected turnover.  The purchase has now completed and Chris & Sandra moved into their new home/business at the end of June 2016.

Tir-y-Coed Country House is a beautiful former gentleman’s residence built in the late Victorian era.  The property is located in the village of Rowen inside the very popular Snowdonia National Park.  The property nestles in over an acre of beautiful, mature landscape gardens and provides a peaceful 5* experience for its guests.

The bed and breakfast has 6 en-suite bedrooms all furnished and decorated to a high standard.  The rooms are spacious and light and situated on the first floor.  On the ground floor there is a modern garden room, bar and balcony all enjoying a South facing aspect overlooking the grounds.  Tir-y-Coed is one of the finest country houses in the area, with an established trade, offering guests free WiFi, a fully licensed bar and restaurant.

Chris and Sandra plan to develop the overnight trade and food offering at Tir-y-Coed, re-opening the dining room on a regular basis and offering evening meals to local residents and guests alike.

Tir-y-Coed - Drawing Room    Tir-y-Coed - Dining Room

“Right from our initial enquiry, it was clear that Chris McDonagh knew his stuff and was quickly able to provide us with what turned out to be a very accurate breakdown of the likely costs. The whole process was completed with the minimum of fuss and on time.  Throughout,  Chris and Carol Jones were actively involved in the process (including accompanying us on visits to the bank and briefing valuers) recommending other professionals such as insurers, keeping us fully informed of progress. They were always on hand to answer questions and provide reassurance and advice.  Having used brokers in the past, the service we received here was on a completely different level, and we’d not hesitate to use them again.”


bed & breakfast-finance

Getting a Commercial Mortgage is not always easy!

We were instructed by a client in East Sussex who had been with her bank for over 40 years. She purchased a house in a popular tourist town close to Brighton in East Sussex with a regular residential mortgage but after moving in she decided to let out two of her three bedrooms as B&B accommodation.  She traded well and paid her mortgage every month, unfortunately the bank then realised she was trading the business and as her mortgage was not a commercial one they called in her loan due to a breach of covenant.

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The Beaches B&B

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.”


Elton Guest House

New Owners for Lake District Guest House

The Elton Guest House is located in the popular town of Grange over Sands and is close to the Lake District National Park and Morecombe Bay. Over the last 2-3 years it has been traded “quietly” which suited the owners’ lifestyle.  Our clients saw the potential of the Guest House and decided it was a perfect property for them to start their own Guest House business.

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Inveraray Inn

Stewart Hindley & Partners play key role in acquisition of historic Scottish hotel

The Argyll Hotel opened in 1755 and is located at the entrance to Inveraray Castle in the historic Scottish town of Inveraray. The town’s location on the shores of Loch Fyne means it is a popular destination for international and domestic tourists.

Our client, The Byrne family, approached us for assistance in raising bank finance for the acquisition of the Argyll Hotel. The family intended to expand their business through this acquisition, adding the hotel to their existing Best Western-branded hotel in nearby Crianlarich, just north of Loch Lomond.

The lead director of the family’s hotel company, Mr Geaspar Byrne, is based in the Far East, necessitating many early morning Skype calls for the team. These calls were instrumental in ensuring a good flow of communication between our client, us and the lender. This is always an important factor when pulling together a high quality business plan. For Stewart Hindley & Partners the relationship with our clients is the most important thing and the satisfaction of being instrumental in helping a client achieve their goals makes all the effort worthwhile.

One of the challenges for raising finance was to convince the lender that the synergy between the hotels would be a profitable one and that with good in-house management both hotels could benefit from bulk purchasing and centralisation of operating systems. It was also important to show that our client was not only experienced within the hospitality sector but that the plans going forward were affordable, doable and above all manageable. Happily, all this was successfully achieved and we secured competitive financing terms on behalf of our client not only for the Argyll Hotel acquisition but also for a complete refinancing of the Crianlarich Hotel.

Upon completion of the transaction, the family conducted a re-branding exercise and the new hotel is now trading under its original name of The Inveraray Inn.

Geaspar Byrne said: “We as a family are thrilled to be the new owners of The Inveraray Inn. This historic hotel is one of the most iconic hotels in the West of Scotland and compliments our other asset perfectly. We could not be happier with the services provided by Stewart Hindley & Partners and would not hesitate to recommend them to others.”

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City Centre Limited Serviced Hotel

The City of Gloucester is an historic City located in the Cotswolds and is popular both with tourists and business visitors.  Our client, who already owned and operated a hotel in Cheltenham, recognised the need for a niche limited service hotel within Gloucester and set about looking for a suitable property.

A site was found in the centre of Gloucester which suited the type of accommodation our client wanted to offer.  After liaising with the local council and being satisfied that the council supported his plans the next step was securing the finance with which to purchase the premises. That’s where Stewart Hindley & Partners came in, we had previously worked with the client on another project and he was happy to work with us again on this one knowing the level of commitment we give to each case and the professionalism we provide on the debt proposal.

The finance was a challenge in that limited service hotels are a fairly new concept in the UK and the lenders were initially reluctant to lend, however, we presented a comprehensive business plan together with his current trading accounts and projected accounts which provided them with all the information they required providing a level of confidence which is sometimes lacking in non-professional applications.

Meetings between the lender, Stewart Hindley & Partners and the client were conducted on and off site and all queries were answered.  With the help of our client we were able to show that Gloucester City Council had a strategic plan for the town as a whole and that a new shopping development would enhance the need for this type of hotel, as well as the need for a cost effective business travel solution.  Ultimately the lender was happy to offer debt at 65% LTV at a great rate of 2.35% gross over a 20 year period.  The deal has now gone through to completion.

What is a Limited Service Hotel?

A limited service hotel is one that provides a good standard of accommodation with basic self -catering facilities in the rooms i.e. tea/coffee making equipment and microwave.  There are no bar or restaurant facilities on site.  As this particular hotel is based in the centre of the town it is easy for guests to visit restaurants and other food outlets if they don’t wish to cater for themselves.  By offering a limited service the hotel is able to provide a good standard of accommodation, in a town centre location for a budget price.