Category Archives: UK Finance Case Studies

Bridge House

Boscastle B&B with Tea Rooms

Louise and Richard contacted us originally in August 2017 as they were looking to purchase a holiday lodge site.  Unfortunately this purchase didn’t progress but after much searching they found Bridge House in Boscastle, Cornwall.

Bridge House is a substantial stone property with popular tea rooms and guest accommodation.  Louise & Richard fell in love with it and decided this was the property for them so it was full steam ahead.

Stewart Hindley & Partners submitted a comprehensive loan proposal outlining Louise & Richards plans for the business going forward and including all historical and projected finance information.

After a successful bank meeting the loan was offered subject to valuation.  Valuers were appointed by the bank and valuation was undertaken and the report duly received.  Thankfully the valuation was positive and the purchase was completed after all the legal work was undertaken.

Louise & Richard moved into the property in July 2018 so had to hit the ground running over the busy Summer period.  If you need accommodation or something to eat in Boscastle you know where to get a warm welcome and a cup of tea!

http://www.bridgehouse-boscastle.co.uk/

Bunker

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/

Channel View  - Weymouth

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.”

Capri GH

Bed & Breakfast Dream Come True in Llandudno

Lee Scott returned to England with the ambition to own and operate his own guest house.  He found the perfect property in Llandudno, close to the Great Orme Railway and town centre so he made an offer and it was accepted.  The dream had begun to be a reality.

The business had been trading but, in the past year or so, the owners retired and ceased trading the concern.  They did, however, leave the guest house in a state where it could be traded almost straight away with just a few immediate updates to be done which was a bonus for Lee as he could more or less move in and start trading. 

Although there were some historic accounts for the business there were no recent figures.  This meant that the application would be mainly premised on projections, which is always a more challenging position from which to apply for a hospitality loan.  The fact the concern was in a popular holiday destination helped and with Stewart Hindley & Partners’ experience we were able to make a successful application on Lee’s behalf.  We supported Lee with his bank meeting and commercial valuation arrangements and made sure he was kept up to date on progress throughout the purchase.

 Lee has just taken possession of the Capri Guest House (May 2017) and is ready to welcome his guests.  If you want a seaside holiday in North Wales then I am sure you will receive a warm and friendly welcome at the Capri.  You can check out his rooms and rates at www.thecapriguesthouse.co.uk

“Stewart Hindley and Partners offered me a professional, helpful and reliable service, the service they offered was first class from start to finish. Stewart Hindley and Partners drew up a business plan and enabled me to secure a commercial mortgage for purchasing a Guesthouse and pursuing my goal in Llandudno North Wales. Further to the above I would highly recommend Stewart Hindley and Partners to any other small or large business wishing to obtain finances in said projects”

 Lee Scott – Proprietor, The Capri Guesthouse

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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Beaumont Hotel, Hexham.jpg

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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gloucester11006 med

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.

Forest How

Mis-selling Could Affect You!

Forest How Guest House is situated in the beautiful Eskdale valley in Cumbria.  It sits within 5 acres of countryside and provides guests with a natural wildlife show daily.  You can often share your breakfast with red squirrel, deer and a host of different birds!

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Hotel Business Recovery – Berkshire Country Inn

The Objective

To assess their situation with a view to undertaking this hotel business recovery.

The Solution

As commercial property finance experts, Stewart Hindley & Partners immediately undertook:

  • a business review, which identified the reasons for the decline in trade and the corresponding loan arrears
  • to present these findings, together with a business recovery plan, to the lender. However, because they were more than 3 months in arrears, the lender regrettably declined to suspend the summons despite a loan repayment schedule based on a secondary debt.

At this stage, the Stewart Hindley team was able to step in to represent their clients in the County Court and had the action suspended.

The Results

  • The hoteliers were able to recover their trading position and to repay their arrears over a period of 12 months.
  • Stewart Hindley & Partners then successfully renegotiated the terms of the client’s hotel loan on a fixed rate basis over a longer term. This ensured the certainty of debt repayments going forward.

Client Comments

“We were constantly managing our cash flow and trying to find ways to repay our mortgage arrears which resulted in a loss of focus on the revenue required to meet our commitments. We had in effect buried our “heads in the sand” when it came to the mortgage arrears.

“It became apparent after meeting with Stewart Hindley & Partners that we were not alone in this situation as they had acted for clients in similar circumstances and had achieved a positive outcome which gave us confidence from the moment we met with them.

“They recovered our business, provided additional secondary debt and importantly dealt with the lender with whom we now have a good and positive working relationship without the costly need for hotel refinancing”.

If you would like to know more about our hotel business recovery services, please email us for further information.