Vanessa & Phillip Moyle had previously let out just one room of their house in Salcombe in South Devon and after some time decided that they wanted to use their love of meeting people and their hospitality skills to develop a business in the popular North Devon coastal village of Lynton.
They spent some time looking for the right property and eventually settled on a 4* guest house, Rockvale House. Rockvale House had been owned for a number of years by the same people and was traded very much to suit their personal requirements. This presented a great opportunity for Vanessa & Phillip to purchase a well-established 8 bedroomed Guest House located in the heart of Lynton and within the Exmoor National Park with great views.
As the concern had been traded for just 6 months of the year and often closed during peak times the accounts did not reflect the true potential of the business which can make it a challenge to fund from a lenders point of view. As we, Stewart Hindley & Partners, are specialists in hospitality finance we were able to present a solid case to the lender with achievable goals and projections showing that debt service could be met.
Vanessa and Phillip completed on their purchase in December 2018 and are now looking forward to operating the business on a year round basis and sharing the beauty of North Devon and Exmoor with their guests and, of course, meeting lots of new and interesting people along the way!
If you are looking for a warm welcome, comfortable stay and panoramic views why not choose Rockvale House on your next visit to the area!
What Vanessa & Phillip say about Stewart Hindley & Partners….
From the first moment we contacted Stewart Hindley & Partners and spoke to Carol and then Mike Cox they could not have been more helpful, they were straight on the case working at such a speed it was brilliant. Mike took away so much pressure and stress normally associated with a purchase like this, he spoke to us in such an open and honest way it was really refreshing. His professionalism was superb and we are very grateful to him. We know Carol did so much behind the scenes too. We have no hesitation in recommending Mike Cox at Stewart Hindley & Partners 100 per cent.
Ness and Phil, Rockvale House
Selma & Anel Begic started talking with us in April 2018 when they were looking for a suitable bed and breakfast to purchase. They eventually found one in June and instructed us to work with them to purchase the concern in July.
The bed and breakfast was well established and had been operated by the same owner for a number of years. It was ready for some refurbishment which meant that Selma and Anel had the perfect opportunity to purchase a popular B&B in a prime location and which had room for improvement and business development.
The whole process proceeded reasonably smoothly with us supporting and guiding Selma and Anel through all the different stages and they completed their purchase in October 2018. They have renamed Harry’s B&B and it is now called Cambridge Bed and Breakfast.
The location of the Bed and Breakfast is ideal for visitors to the Cambridge Business Park, most of the colleges of Cambridge University and is just 5 mins away from the river Cam and Jesus Green park, through which you can take a scenic walk to the beautiful town centre. So, wherever you want to visit in Cambridge it is an ideal place to stay in.
What Selma & Anel say about Stewart Hindley & Partners….
I would absolutely recommend Stewart Hindley’s expertise in commercial mortgages.
Mike Cox was excellent in keeping the process rolling and being professional even in difficult times. The rates offered saved me money in the long run, exactly what we needed with a new business.
Mikes help with the business plan and the banking interview process was invaluable.
Thank you for all the help and support!
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!
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.
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.
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.”
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
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.
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.
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 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!