Whether rain or shine, we love the seaside and in the UK, we’re fortunate to possess some real gems; the kinds of charming, stunning and exciting spots that attract scores of holidaymakers to B&Bs and guest houses by the coast.
We asked you what your favourite British seaside destinations were and here are your answers:
British staycations are on the rise, not purely for Brexit or financial reasons, either – many of us are (re)discovering the UK’s incredible landscape, beautiful beaches and exciting cities. Hence it could be a good time to go into the B&B, guesthouse or hotel business.
Continue reading “12 places in the UK which will make you feel you are abroad”
More and more luxury B&Bs are popping up all over the country. Whether it’s a Victorian seafront city break in Brighton or a rural countryside retreat in Cornwall, boutique B&Bs are fast becoming a strong competitor to larger hotels. Offering quirky and personal experiences for guests, these types of businesses are also a good choice for potential guest house and B&B owners.
Continue reading “Why Boutique Bed and Breakfasts are Big Business”
A relatively new addition to the hospitality trade, boutique hotels, thought to have been created in the 1980s, are typically small, independent businesses containing anything from 10 to 100 rooms. The very name suggests accommodation that is chic, classy and luxurious – that’s certainly what guests expect, at any rate.
We’re always helping new clients secure commercial business mortgages so they can open their very own boutique hotels – and with access to hotel finance, plenty of research and lots of attention to detail, there’s no reason why theirs couldn’t emulate the country’s best boutique hotels. Like these:
Situated in the beautiful Lake District, Randy Pike is a converted gentlemen’s hunting lodge which has been recently renovated. The three large suites (with ‘a bathroom virtually the size of Luxembourg’) have been decorated meticulously, in keeping with the original features and without detracting from the wonderful views outside. The owners, Andy and Chrissy Hill, have earned legendary status on TripAdvisor.
Image: Monachyle Mhor Hotel by Raymond Chisholm
This award-winning 14-room hotel is set in the wooded banks of atmospheric Loch Voil. The 18th Century farmhouse has been renovated into a contemporary, stylish property, with design elements which were influenced by nature and the immediate surroundings. It contains incredible suites – some with their own log burners – and a restaurant which serves a-la-carte dishes. The hotel has been described as ‘exceptional’. You can even arrange to arrive by seaplane.
Deep in the Cotswolds is the delightful Plough Inn, the perfect spot from which to explore the neighbouring countryside. Retaining its traditional feel, the refurbished inn serves delicious food, while the seven double bedrooms and one single are light and airy, each with a luxurious modern bathroom. The entire inn emanates Cotswolds charm.
Given an – in our opinion – ungenerous 8/10 by the Telegraph, The Grove is a stunning country house hotel which is nestled in a four-acre glade close to the Preseli Hills. With numerous accolades to its name, The Grove was restored from dereliction in 2007 and prides itself on sustainability. There are 14 immaculate rooms situated in the house itself plus several cottages, each one sumptuously decorated and furnished.
Chic and luxurious, the Kemp Townhouse is the epitome of elegance. A grade-II-listed building situated in one of Brighton’s most cosmopolitan areas, it is beautifully presented and deserving of its enjoyEngland.com and TripAdvisor accolades. Each of the rooms, ranging from the extravagant Four-Poster Feature Room to the Cosy Single, have been decorated to an extremely high standard.
Located in London’s east end is a former Victorian warehouse which has been reborn into an eco-friendly oasis of 59 ‘quirky vintage-modern style’ rooms. Choose from stunning rooftop studios or perfect rooms which feature smart TVs, a ‘rain dance’ shower and mood lighting – there are even hot water bottles and umbrellas to use, should you need. The Zetter is place with buckets of style and a lot of class.
Full of character and thoughtfully designed, the Fitzwilliam Hotel is vibrant, modern and that little bit extravagant. The suites are super-stylish with mini sound systems and plush, comfy beds, all featuring top quality furnishings from the distinctive purple and yellow colour palate. With its own bar and restaurant, it’s the ideal place from which to start your Belfast adventure.
As you can see, there are some beautiful examples of boutique hotels out there; more important is the fact that there’s a demand for such lovely accommodation. Yours could be the next big thing!
If you’re interested in opening your own bijoux boutique and would like to find more out about hotel finance, please get in touch, we’d be delighted to chat through your options.
With news that increasing numbers of Brits are planning a staycation this year – especially in light of the potential price hikes that Brexit might unleash on foreign travel – those in the UK’s hospitality sector may experience some unexpected good fortune. It’s not a bad time, therefore, to get into the industry yourself.
If you’re reading this blog, then you’ve probably been toying with the idea for a while; still deciding when might be the right time to take the plunge. Perhaps you’ve even got your eye on a property already. As experts in Bed & Breakfast Finance, we always advise our clients to do thorough research and with that in mind, here’s our list of things you should consider when buying a B&B or guest house.
Arguably the single most important factor, location has a strong bearing on your chances of success. When choosing it, you should determine whether you are looking for a business that will be busy year-round or only in peak seasons, and choose accordingly. For a consistent income, you’re best-advised to pick an area that’ll be popular come rain or shine; one that boasts sights and activities that could attract visitors in both heatwaves and snow storms.
Though this may not influence anything more than your décor or menu choices, it’s a good idea to understand your target audience so that you can take steps to continue to attract the right people. Find out who the business appeals to at the moment, as running a guest house for young families will be quite different to one which is patronised by retired couples.
There’ll be a reason why the current owners want to sell. It might be that they wish to retire or have a personal reason for moving on. Or it could be that the place is a millstone around their neck. Make sure you know what this reason is if you want to save your neck.
What to charge can be a big dilemma, and it depends on several factors: the amenities on offer, location, competition. Establish how the current rates compare by drawing up a list of all the B&Bs, guest houses and hotels in the area. Where might your revamped business realistically fit in the ‘hierarchy’ of accommodation? Would those rates be sufficient?
Size is a big deal in the hospitality game and it should be high on your list of considerations. Is the property of a manageable size? Will you be able to operate with X rooms without help or will a larger place necessitate more staff – and therefore eat into your earnings?
6) Does it have a good reputation?It’s possible to turn some concerns around when under new management – especially if you make some significant changes – but ideally, you want your property to be well-regarded. To find out what people think, search for any existing reviews on sites such as Trip Advisor, Rooms Booked, Late Rooms, etc. That should give you a clearer picture of the job in hand.
Ensure you know whether the business requires any refurbishment or remodelling, so you can build this into your plans – both financially and time-wise. When you buy a B&B, a commercial survey is undertaken which will assess the value of the business. If there are obvious structural problems, the surveyor may point them out and recommend a buildings survey be undertaken. A commercial survey will not specifically look at the structural condition of the building.
While you may not be thinking about growth right now, it’s helpful to know whether there are opportunities to grow the trade in the future. For instance, is there room and/or planning permission for an extension? Are there any restrictions placed on the property or area that might prevent expansion? Are there spaces that could be converted into a tea lounge or bar, to attract passing trade?
If the property is in a popular area, you need to work out what’s different about the B&B – or what could be if you took over – that will then make you stand out from the competition. You need to define your unique selling point and capitalise on it.
When you’ve made up your mind and found the property of your dreams, then the fun really starts. You could create a business and a lifestyle which far surpasses your expectations and brings you endless joy. We can help you get there with our B&B and guest house mortgage options.
Contact us on 0845 272 400 or via our online enquiry form to discuss making your dreams a reality.
You’ve got a large property, the children have flown the nest and now you’re just rattling around in it. Or perhaps you and your partner have inherited a house but it’s costing the earth to maintain. Wouldn’t it be great if your home could actually make money for you? Converting it into a bed and breakfast could not only enhance its value, but provide an income, offering you a completely new way of life and the means/motivation to keep the property in good condition.
It sounds like such a simple idea, maybe too good to be true, but it’s one which many people have opted for and they’ve never looked back. Here are some points to consider if you’re thinking about turning your home into a B&B.
The trend for ‘staycation’ holidays is not diminishing. With affordability still the biggest issue for British holidaymakers, not to mention security fears, research reveals that some 77 per cent of UK adults either went on or planned to go on a staycation in 2015. It’s looking good for 2016, too – which is good news for those that run B&Bs and guesthouses.
Before getting on to the subject of B&B finance, one big consideration and contributing factor towards your success is location. It’s vital that you are situated somewhere that would attract guests. HuffPost Travel named among its top staycation destinations the Lake District, the Norfolk Broads, Edinburgh, Cornwall and North Wales. Big towns and cities are similarly a good option. Just consider your situation – is there enough in the vicinity to attract guests?
In our blog: Why owning a B&B can be a dream come true, we explore the best bits about leaving the nine-to-five and changing your life. You get to be your own boss and meet endless numbers of interesting people.
If you’re seriously considering converting your home into a B&B, ask yourself whether you’d feel happy about having other people coming and going through your home. Also, think about the lifestyle. While many B&B owners say they love their new business, it does require hard work and commitment. However, if you’re fine with all of that, let’s talk money.
When arranging B&B finance, in addition to paying the mortgage, remember to allocate sufficient funds for renovating the house into guest accommodation. This covers furnishings, decorations, refurbishments and countless other tasks that will need to be completed before you can open. Then there’s advertising, creating a website and potentially paying staff wages, too.
It’s pertinent you keep funds in reserve to cover all eventualities, as there will be changes in demand and economic circumstances. However, if you get the right advice and choose the best mortgage deal, you should be able to keep a tight control over your cash flow.
One of the questions we’re most often asked by people who are ‘new to trade’ is: ‘Can I get a residential mortgage on a to trade as a B&B?’ The answer is no. Running a B&B requires a commercial mortgage. In fact, using your existing residential mortgage can actually get you into trouble with your lender owing to the differences in rates between residential and commercial mortgages.
You’ll therefore need to replace your existing residential mortgage to a commercial one. As this is a business, there are many more, and different, conditions that need to be taken into account by both lenders and you. However, an advantage of commercial mortgages is that the repayments can track the season, meaning you can pay more during peak times and less when it’s quiet.
Running a bed and breakfast is a huge undertaking, so it’s important to do your research and speak to the experts. With regard to finance, contact a broker that specialises in the industry – like us at Stewart Hindley and Partners, who can identify the most appropriate solution to suit your individual situation. We can advise on other aspects of the business, too, helping you to create a business plan and secure a mortgage which allow you to realise your dream.
Another good idea is to contact other B&B owners, or read case studies, so that you can gain first hand insight into the everyday operation of such a business. Learn from their experience, take advantage of their knowledge and see your own business thrives.
Providing you satisfy all of the personal and financial criteria and are sure that this is the move for you, then there’s no reason why you can’t turn your home into a bed and breakfast, enjoying a way of life that so many others can only envy. Why not give it some thought?
If you’d like to discover more about B&B finance, we’d love to help.
There comes a time when owners of a B&B or Guest House decide they want to retire or just change direction. This is often a decision that is taken over a couple of years, during which time they trade their business on a limited basis and to suit their lifestyle requirements. Consequently, it may not make as much money as it used to. Whilst this might suit the owners, it makes getting a commercial mortgage more challenging for potential buyers. Challenging, but not impossible.
Lenders require the last three years of a commercial hospitality business’s trading accounts, so they can see how it has been operated and how profitable it is. If the business has not been traded to its full potential, the lender will view it as being a marginal or non-profitable concern.
Whilst the lender may understand the reasons for the B&B or Guest House’s decline in trade, there is no guarantee for them that you, as a new operator, can improve it – regardless of your business plan. As a result, lenders examine the last three years’ trading accounts for a steer on trading profit when assessing the mortgage they can offer, in order to minimise their risk and exposure. What they lend will be a reflection of this.
Some lenders, although not all, will take into account a second income from one of the applicants. This means that if one of them has a job which can practically be continued whilst the trade is built up, that income can be taken into consideration. This, in turn, helps with the debt service cover.
Obviously, once the business has improved and can sustain the loan repayments on its own, a second income will not be necessary and both parties can work in the B&B or Guest House. Positioning of the loan application becomes even more important and at Stewart Hindley & Partners we have the experience and ability to work with you to get the deal across the line and you into your exciting new lifestyle.
If you find a business you want to buy and the turnover or profitability doesn’t look great, even if it’s making a loss, don’t immediately discount it. We are more than happy to look at the accounts for you and to see if we can raise a mortgage to help with your purchase. Get in touch and we can discuss your options.
One of the reasons so many people buy a B&B or guesthouse is so they can use it as a nice way to earn an income as they start to wind down and think about retirement. It’s a wonderful lifestyle, for sure, but if you are a business owner who’s thinking about retiring from the hospitality trade, you must make sure you do it the right way.
Continue reading “Thinking of selling your B&B or Guest House business and retiring?”
Millions of people pass through the UK’s airports every week, heading overseas in search of a holiday paradise. What many don’t realise, is that you can find some pretty special locations without leaving the country; staying in some incredible B&Bs and guesthouses, the like of which you don’t find elsewhere.
The UK possesses some of the world’s most stunning scenery, impressive natural landscapes and fascinating historical landmarks. You can enjoy the summer sun in seaside resort on England’s south coast, or ramble through rolling hills in the Scottish Highlands. You’ve plenty of castles to explore in Wales, and a chance to trek mountains in Northern Ireland.
Opening your own B&B is a life-changing experience, one that can be a dream come true. Providing you observe the rules around trading, that is. One of the most common and most costly mistakes made by new-to-trade owners is operating on a residential mortgage when they should have a commercial mortgage for their B&B. It’s something we’ve seen and dealt with frequently; a pitfall which can put people in a very difficult situation.
Continue reading “The pitfalls of trading a B&B on a residential mortgage”
