The average price of purchasing a B&B is estimated at Â£572,000. When you factor in the price of the property and the cost of the contents, you may be looking at a large initial outlay before you get started. If you already have a property you’re planning to convert into a B&B, you’ll still need funding for new equipment, renovations and decorations.
Many people that purchase a bed and breakfast or convert their property into one will require a mortgage to free up funds. Several lenders specialise in hotel and B&B mortgages, but there are slightly different requirements than with a standard mortgage. The fact that it is for business purposes means that many lenders will likely want to see your plans before they will offer you funds. This helps them to determine how much security you can offer and decide whether or not they want to back you.
Bed and breakfasts can make a great turnover, but you need to carefully consider several factors and incorporate them into your business plan, such as location, facilities and value for money. The most attractive plans are well thought out, beautifully presented and backed up by solid facts and figures.
Before you look to secure bed and breakfast finance, you need to think ahead to your operations. A B&B is a demanding business and requires time and work to run effectively. Managers have to be on hand around the clock because there is no telling when guests will arrive, depart or require your help. Days are likely to start early and end late.
However, the effort you put in can really pay off, with the average turnover for a bed and breakfast estimated to be Â£127,000 per year according to Direct Line. This will naturally depend on the location, quality of your facilities and the prices you offer as these will all have an impact on your occupancy rate. If you want to get the best occupancy you need to identify your target audience and ensure you appeal to them in the best way you can. We can assist you with all matters relating to bed and breakfast, hotel, guest house and marine finance and mortgages, so get in touch with us today and find out how we can help you get your business off the ground.