The importance of establishing B&B purchase feasibility

  • 9th October 2015
  • News
  • Stewart Hindley

Statistics released by Smarta Business School show the bed and breakfast sector to be 28% larger than the low cost hotel sector, turning over £2 billion per year. As with many businesses, B&Bs suffered throughout the recession, but the UK tourism industry has now recovered and is one of the largest global sectors with approximately 180,000 businesses worldwide. If you are interested in running a bed and breakfast, or if you have made the decision and are researching your financing options, we can offer you professional advice and help you prepare high quality proposals for presentation to lenders.

The last few years have seen a major rise in demand for B&B finance and B&B businesses are extremely appealing to lenders as they are seen as excellent security. When you aim to buy a bed and breakfast property, you should always make sure your application offers a coherent vision and strategy. Lenders want to see finance applications from highly motivated individuals with a clear focus on building a sound hospitality business.

If you wish to buy an existing business it is important to investigate its profitability and history. A business with high occupancy rates and a healthy profit margin is an attractive option, but there are several factors to consider to ensure the same level of continued success when you take over.

The hospitality sector is very much about people and the character of the proprietor plays a big part in the success or failure of a business. If a business is small with a large customer base, it is likely that a substantial portion of its success can be attributed to the personality of the manager and the way it has been run. If you intend to take over the reins, it is prudent to do some research and develop an understanding of the services that have repeatedly attracted the same guests. However, it is equally important to develop operational strategies of your own to attract new customers and compensate for those that may take their custom elsewhere as a result of the business changing hands.

We can assist with your finance application and ensure it is as attractive as possible to lenders with a detailed plan of your intended business operations and your cash-flow predictions.


Stewart Hindley

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