Category: News

How will the interest rate change affect hospitality lending?

Posted on by Carol Jones

The most positive aspect of the recent rate rise by the Bank of England is that it was not a surprise. It was rather the case that the November 2 bank rate rise from 0.25% to 0.5% was widely expected. Now that it has happened as anticipated it’s important to manage your financial affairs with it.

Here at Stewart Hindley we have given this interest rate rise our priority attention. In terms of our status as the leading name for hospitality lending it is vital that we understand all possible implications for the sector. In this article we are going to look at two key areas – how existing loans are affected and how new hospitality lending agreements might be impacted.

Existing Hospitality Loans

There is no getting away from it – the increased rate will mean an increase in the amount paid in service of debts. The extent of the increase is, however, not fixed. How much extra will need to be paid – and when – depends on two factors. These are the nature of your existing loan and what decision your lender has made about the increase.

In respect of the latter, the implementation of the change is not a constant. Different financial institutions will introduce the rate change in accordance with their own strategy. For guidance in this we must refer you to your lender. If they have not communicated a change with you yet then it would be a proactive move to contact them directly. It would be to your benefit to initiate discussions around any proposed changes.

This contact also relates to the first factor. Several of Stewart Hindley clients are on fixed term, fixed rate lending agreements. These will have been negotiated with possible interest rate changes in mind, but due to the fixed nature will not be directly affected. Should your fixed term loan be close to a termination and renewal point then now would be an ideal time to start initial negotiations in regards of the new terms.

New Hospitality Loans

A widely held view is that increased interest rates are met with a decrease in capital available for business loans. We do not believe this to be the case in the current situation – certainly not in respect of hospitality lending.

There are a number of reasons for the Bank of England rate increase decision. Many of them relate directly to ensuring that the business environment remains buoyant and stimulated. At this time the UK leisure and accommodation sector is viewed as being particularly healthy. With this being the case we believe there will be no adverse effect on hospitality lending due to the bank rate change.

If you are seeking assistance and advice in respect of a new hospitality loan please do not let the rate change put you off. Now is the time to contact us here at Stewart Hindley about your plans. Our Brokers  can help you secure the best terms possible for your financing requirements.

As you can see the decision by the Bank of England was widely anticipated and absorbed into the hospitality lending market. We understand that the natural reaction to such an increase is caution and concern. At this stage, however, we do not view this change as negative. With the intention of the increase being to give a boost to the British economy the impact on the accommodation and leisure section is in all likelihood going to be positive.

The team at Stewart Hindley are committed to giving you the very best service available for all hospitality lending requirements. We have a proven track record of success, enabling many businesses to flourish in the UK leisure and accommodation sector. It would be our pleasure to provide this service for you.

For more information, or to set up an appointment, please call us on 01488 393042.

Are you all set to cash in on the UK tourism boom?

Posted on by Carol Jones

BBC News today (10 October) reported that tourism to the UK has reached record levels and Britons are also holidaying at home in record numbers with Britain’s beaches and attractions attracting more domestic visitors and “staycations” on the rise.

Record figures

  • Nearly 40 million overseas people are expected to have visited the country during 2017 – a record figure.
  • The tourist promotion agency, VisitBritain, forecasts overseas trips to the UK will increase 6% to 39.7 million with spending up 14% to £25.7bn this year.
  • During the first six months of the year there were a record 23.1 million overseas visits to the UK – up 8% on the same period in 2016 – and the figures for July topped four million for the first time, with only a slightly smaller number of visits made during August
  • From January to June this year, domestic overnight holidays in England rose 7% to a record 20.4 million with visitors spending £4.6bn – a rise of 17% and another record.

Tourism is economic powerhouse

And, The British Tourist Authority (BTA) estimates that tourism is worth £127bn annually to the economy.

BTA Chairman, Steve Ridgway, called the sector an “economic powerhouse” and a “job creator right across Britain”.

“Two-and-a-half times bigger than the automotive industry, employing three million, tourism is one of our most successful exports and needs no trade deals to compete globally.”

Tourism Minister John Glen said: “Tourism contributes billions to the UK economy and supports millions of jobs.”  He added that the record figures for overseas and domestic holidaymakers were “testament to our world-class attractions and the innovation of our tourism industry”.

Call for continued investment

Authorities suggest that one of the driving forces has been that the UK has become a cheaper place to visit for tourists from overseas following the fall in the value of the pound since the Brexit vote last year.

But Mr Ridgeway said: “Tourism is a fiercely competitive global industry and you cannot just build a strong, resilient industry on a weaker currency.

“We must continue to invest in developing world-class tourism products, getting Britain on the wish-list of international and domestic travellers and we must make it easy for visitors to make that trip.”

A good time to look at hospitality finance

In this positive business environment for UK tourism, there is no better time to invest in a new hospitality business or look to expand an existing one. There are some great hospitality finance deals available now and Stewart Hindley and Partners are ideally positioned to advise you on the best rates and hospitality mortgages to suit you.

We are long-established specialists in securing hospitality finance. Our experienced team will be able to offer you friendly and informative advice to help you get the best rates and business support.

Browse our site for case histories and more information about the process involved in securing hospitality mortgages or call us now to speak to our team of experts.

Source:  http://www.bbc.co.uk/news/business-41564655

The Pink Book updated with card charges legislation

Posted on by Carol Jones

The Pink Book is one of the most valuable resources available to all within the hospitality accommodation sector. It provides regularly updated information regarding legislation that affects businesses operating in the hospitality industry. A recent update has looked at the implications of changes to debit and credit card charges. In this article we are raising awareness of the legislation change. This will also show what vital reading The Pink Book is for all business owners and operators.

Here at Stewart Hindley & Partners we are renowned for our specialist financing work. Our ability to give you the best service means we are always up to date with changes in the industry.   We trust The Pink Book to deliver important information on developments such as the coming card charges legislation.

The Card Charges Legislation

Firstly, let’s look at the legislation. As of 13th January 2018 all businesses may no longer add extra charges when customers pay with a debit or credit card. This is in compliance with the EU Payments Service Directive II. The ban extends to other forms of payment, including the increasingly popular PayPal.

This legislation change poses a challenge to owners of guest houses, hotels and bed & breakfast businesses across the UK. All owners need to balance competitive pricing against factors such as banking charges. The changes made need to help sustain profitability for the business.

In looking at the changes to debit and card charges The Pink Book gives some vital guidance. A key priority is ensuing your booking system complies with the legislation. This applies to both website bookings as well as on site payments.

How to Address the Card Charges Legislation

Accommodation businesses need to focus on how best to address the change for their own circumstances.  The Pink Book provides possible solutions for all to consider. An example of this is absorbing all potential banking costs into the overall pricing strategy you have in place. Detailed planning and modelling to ensure the best strategy is adopted for your specific business is always the right approach. It would be beneficial to consult with trusted and qualified business planners.

Here at Stewart Hindley & Partners we appreciate being able to take a “to and through” approach to our clients. Our specialist financial experts for the hotel and leisure industry build strong relationships with the businesses we serve. Our team will always point our clients in the right direction for advice. When it comes to this, first of all we would always recommend owners consult The Pink Book frequently for important information affecting their business.

For more information on The Pink Book please visit their website. This can be found on the Visit Britain site – https://www.visitbritain.org/pink-book. To discuss your funding and financing requirements please give us a call on 01488 684834. You can also reach us through our contact page. We’re here to help you in reaching your aspirations for success.

 

How About A B&B In Skipton Or The Yorkshire Dales?

Posted on by Carol Jones

Once again, the Yorkshire Dales confirms its enduring appeal, with Skipton being newly  crowned the most desirable area in the country by The Sunday Times’s 101 Best Places to Live in Britain.

The Sunday Times judges put it in top spot for its ideal combination of low crime rates, “top class” schools, great transport links, “buzzing” high street, pretty and reasonably priced property and beautiful surrounding countryside.

“Skipton is a worthy winner,” said Sunday Times home editor Helen Davies. “We love it for its big-hearted, buzzy life.”

Second in the list was Newnham, a district of Cambridge, with Monmouth, third and Falmouth, fourth.

Each place was selected for offering the best quality of life to the widest number of people and combining desirable features such as a positive community spirit, good local shops, services and attractive outdoor spaces.

Locals proud

According to local paper, The Craven Herald:

  • Skipton MP Julian Smith said he was over the moon: “The judges described all the attributes we know Skipton has, whether it is access to the Dales, quality of its schooling or its high street. I am a very proud local MP.”

“It’s in the heart of Yorkshire and it’s the gateway to the Yorkshire Dales. It’s strong on tradition and it has a really excellent education system.

  • Councillor Chris Harbron, leader of Skipton Town Council, said: “This is a fantastic result for the town and is all the more valuable in that it is an independent survey based on a combination of hard data and research.

“It’s no accident that Skipton performs so well. It is a combination of the hard work of so many organisations – councils, schools, police and emergency services, shops and businesses, community groups and their support networks – they all come together to make Skipton what it is. I’m very proud to work and live in the town. We should sing this from the rooftops.”

  • Leader of Craven District Council, Coun Chris Knowles Fitton, said: “This accolade will further boost the area as a great place to live, work and visit and we shall all continue to work hard to maintain and enhance the town’s growing reputation.”

Where is your b&b? 

Yorkshire has more Michelin-starred restaurants than anywhere else in the country (apart from London), beautiful and varied countryside and grand old cities, making it a great place to run a b&b or guesthouse.

If you are looking at starting a bed and breakfast, or building up an existing guesthouse business; wherever it is, we can help.  At Stewart Hindley and Partners, we understand the hospitality business through and through.

We are long-established specialists in securing bed and breakfast and guesthouse mortgages.  Our experienced team will be able to offer you friendly and informative advice to help you get the best rates and business support.

Browse our site for case histories and more information about the process involved in securing b&b finance or call us now to speak to our team of experts.

EPC Requirement Changes For Lending To Accommodation Businesses

Posted on by Carol Jones

The conditions for lending to accommodation businesses are about to undergo significant change. Legislation which comes into effect as of April 2018 will see far stricter requirements be in place. This relates to the energy efficiency of a building, with strict requirements before a loan can be approved. The changes might at first appear quite daunting to accommodation business owners – in particular those new to the sector. In light of this, we at Stewart Hindley would like to focus on the tremendous long term business benefits of the change.

Lending to Accommodation Businesses – EPC Requirements

Firstly, let’s have a look at the legislation change. As of April 2018 commercial and rented properties must have a minimum of an ‘E’ rating in respect of their Energy Performance Certificate (EPC). Up until now it has been acceptable to have an ‘F’ or ‘G’ rating. This changed has come as part of the national drive to make the country as energy efficient as possible.

In terms of this, all new and existing loans will be monitored under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations Act 2015. You might be more familiar with this being referred to as MEES, the Minimum Energy Efficiency Standards.

Whilst this legislation affects virtually all properties in England and Wales at Stewart Hindley our focus is on accommodation properties. From our perspective it is quite clear that lenders will not do business in respect of any property that falls below an ‘E’ EPC rating. The question then becomes one of how to ensure financing successfully in these new conditions.

Important Factors to Consider

An important point to consider is that the onus for providing an officially certified EPC certificate lies with the seller. When an accommodation business is sold as a going concern this rating must be presented to the buyer in advance of an agreed deal. This is advantageous for the buyer, as for the seller to sell they must provide a certificate which meets the EPC criteria set by lenders.

For trading concerns it is important to note that accommodation businesses require a commercial EPC rating. This must be carried out by a suitably qualified person whose certification will be recognized and accepted. Due to the nature of their trade accommodation business owners can be misled into believing a residential EPC certificate would be acceptable.

Earlier in this article we mentioned the long term benefits of this change. This relates to an overall reduction in business operating costs. In straightforward terms the key to business success relates as much to minimizing costs as it does maximising profits. Energy can routinely be one of the highest costs for an accommodation business. By ensuring the property meets the highest energy efficiency rating possible you can ensure an optimal management level of this business cost.

Lending to Accommodation Businesses – Our Commitment to Service

We are proud of our standing as the financial experts able to secure loans for properties in the accommodation, leisure and hospitality sectors. Our team achieves this by keeping fully aware of industry affecting changes such as this EPC legislation. Stewart Hindley clients know that they can always rely on us for knowledge and insights into the market.

It is true that any change to requirements can be seen as a disruption to business planning within the accommodation sector. We have highlighted the positive benefits of the imminent changes affecting EPC ratings.

Our team handle all aspects of lending to accommodation businesses. We are committed to providing you with the knowledge and services required to reach your financing requirements. Please contact us to see how we can be of benefit to you. We’re looking forward to meeting you soon.

Image copyright: https://www.epcregister.com

Overseas visitor numbers and spends reach record highs

Posted on by Carol Jones

The good news for the UK hospitality industry is that visitors from abroad have reached a record high.  Office of National Statistics (ONS) Figures released earlier this month show that inbound tourism in July was the highest ever for inbound to the UK since official records began in 1961.

A Record July

The latest figures show:

  • A record four million overseas visits to the UK during the period, the first month to ever break through the four million mark, and up 6% on the same period last year.
  • A new record for the highest tourist spending in the UK – with overseas visitors spending £2.8bn here
  • Strong growth in visits from North America continuing in July – with a record 650,000 visits, up 9% on last year.

John Glen, UK Tourism Minister, said: “Tourism is a major economic force that creates jobs and drives growth for the whole of the country. These record figures show the continued strength of this important sector and the UK’s global position as a must-visit destination.”

Patricia Yates, VisitBritain director, added that the best-ever monthly figures underpinned a strong first half of the year for inbound tourism.

She said: “This sustained growth demonstrates Britain’s continued ability to compete internationally for visitors and shows that tourism, one of our most valuable export industries, is an increasingly important driver of economic growth across our nations and regions.”

Not just a one-off

A look back at ONS figures for the last six months shows consistent growth, with:

  • The total number of overseas visits to the UK from January to July this year totalling 23.1 million – up 8% on the same period last year and a record year–to-date.
  • Spending by visitors during this period hitting a record £13.3bn, up 9% on the same period last year.
  • 9 million overseas visits from North America from January to July – up 21% on the same period last year
  • 1 million overseas visits from EU countries, the UK’s largest visitor-generating region – 4% up on last year.
  • Visits from the rest of the world (which includes Australia, China, the Gulf markets and India) rising to a record 3.6 million from January to July this year – up 18% on the same period last year.

Last year set a record for inbound tourism to Britain on visits and spend with 37.6 million visits, up 4% on 2015 with visitors spending £22.5 billion, up 2%.

Don’t miss out on these opportunities

Do you need hospitality finance to take advantage of these trends?  Maybe you are considering a start up and require a mortgage to purchase hotel, b&b or self catering accommodation.  Or, perhaps you are looking to expand your existing hospitality business or convert your residential accommodation to commercial.

Whether you are looking for a hotel mortgage, b&b mortgage or other finance across the hospitality sector, Stewart Hindley and Partners are here to help. We understand the hospitality business through and through, which means we can offer you friendly and informative advice to suit your particular needs and circumstances

Browse our site for case histories and learn all about the process involved in securing hospitality finance or call us now to speak to our team of experts.

Source:  https://www.hotelowner.co.uk/11456-highest-ever-visitor-spending-july/

Are hotels missing some obvious tricks to boost dining sales?

Posted on by Carol Jones

Yes – according to new research by CGA and Zonal Retail Data Systems’ GO Technology report – which found that Hotels are missing out on F&B sales by not offering customers an incentive at the time of booking, or a facility to order food from their smart device during their stay.

Their report surveyed 5,000 adults in the UK and found that:

  • 54% of leisure customers (and 45% of business users) cite price as a barrier to dining at a hotel’s in-house restaurant during their stay.
  • guests’ preconceptions of the expense of eating in hotels can be overcome by offering advance booking discounts on dining. 50% of leisure customers (and 43% of business guests) would consider making a reservation if they were offered an incentive at the time of booking.
  • A further 45% of 18 to 34 year olds would also be more likely to order room service from the hotel restaurant if they could use their smartphone,
  • 62% of those would be more likely to book lunch on-site, if they could do so from their mobiles

The mobile booking facility demand echoes a growing trend in the general hospitality sector, where 67% of consumers have said they would spend more and buy more drinks if they could order from a mobile device.

Rhys Swinburn, managing director of hotel management system, High Level Software, part of the Zonal Group, said: “Our research indicates that consumers prefer a more personal approach when it comes choosing where to stay, giving hoteliers a real opportunity to capitalise on this captive market.

“Hoteliers need to think how they can pitch themselves against high street operations and incentivise guests to stay for lunch, dinner or even enjoy a drink before heading out.”

He added: “Giving guests the chance to reserve a table, coupled with an offer at the point of booking their stay is likely to have a positive impact on trade.”

How to find hotel finance for tech investments

If you are looking to make any investments to grow your hotel business – like investing in marketing software to facilitate initiatives like mobile reservations and pre-booking discounts – you may well need hotel finance.

At Stewart Hindley and Partners, we are in an ideal position to help you as we understand the hospitality business through and through. We are long-established specialists in securing hotel mortgages. Our experienced team will be able to offer you friendly and informative advice to help you build and improve your business. Browse our site for case histories and more information about the process involved in securing hotel finance or call us now to speak to our team of experts.

Source:  https://www.hotelowner.co.uk/11306-go-technology-report/

The UK’s private island hotels – four of the country’s best kept secrets

Posted on by Carol Jones

When you think of private island hotels, you probably think of the Caribbean or The Barrier Reef, but did you know the UK also boasts some of its own exclusive island hotels.

We highlight four of them and their stand-out factors:

  1. Devon – Burgh Island Hotel

This is an art deco gem of a building on its own little island just off the South Devon coast, connected to the village of Bigbury-on-sea by a 250m long spit. Getting there is part of its attraction – you either approach on foot at low tide or by sea tractor at high tide.

Past celebrity devotees of the hotel include Noel Coward and Agatha Christie, the Burgh Island hotel was beautifully restored in 2006, retaining its vintage leanings with a no-TV policy in the bedrooms, nightly black tie dinners, a 1930s billiard room and a sheltered sea water bathing lagoon.

  1. Scotland – the Isle of Eriska Hotel with hot tub

A glorious turreted 300 acre private island hotel with 25 bedrooms, 5 spa suites with hot tubs and two 2 bedroom cottages.  Its wood-panelled restaurant serving locally produced food from Eriska smoked salmon to venison tartare and Scotch beef sirloin.

  1. Isles of Scilly – Star Castle Hotel

A converted fortress built on the island of St Marys in the 16 century.  Shaped like an 8-pointed star, it offers stunning views in every direction.  There are 11 rooms in the castle itself and 27 further rooms in new wings and an indoor heated indoor pool and tennis courts.

  1. Jersey – The Atlantic Hotel

A touch of the Cote d’Azur – set in 6 acres on a headland overlooking the golden beaches fringing St Ouen’s Bay.  It’s seven course tasting menu is legendary, as is its local surf school.

Not everybody running a hotel can boast their own private island location but it does demonstrate how key the old adage ‘Location, Location, Location’ is to the success of any hotel – whether it offers a central city location, proximity to famous sights and attractions or a rural haven.

What is your ideal hotel location?

If you are considering a hotel start up, you will no doubt be looking at a number of possible property locations and starting to build a business plan.

Our experienced team can offer you friendly and informative advice to help you start up or build and improve your business.

We have many years of experience in the hospitality sector and can offer hotel business and finance advice, including securing hotel mortgages.

Browse our site for case histories and more information about the process involved in securing hotel finance or call us now to speak to our team of experts

 

Source:
http://www.telegraph.co.uk/travel/destinations/europe/united-kingdom/galleries/Island-hotels-in-Britain-four-of-the-best/

 

Could you take advantage of the rise of glamping?

Posted on by Carol Jones

If you have ever searched for self-catering holiday accommodation, or are already ‘in the business’, you won’t have helped but notice that more and more proprietors are offering unusual ‘glamping’ holiday lets aimed at those looking to be more in touch with the outdoors on their holiday breaks.

The most popular structures to have emerged on the scene in the past few years include: lodges, yurts, pods, gypsy caravans, shepherds huts and tree houses.

As long ago as 2010, Sawdays, one of the first and leading directories offering handpicked and inspected Special Places to Stay, for example, saw the potential in this month.  They created their own spin-off website canopyandstars.co.uk, a collection of inspected and selected, quirky places for glamping.  They offer hundreds of different options for rustic-style holiday lets aimed at anything from honeymooners to families.

Here are just a few examples to give you a flavour of what can be done and how their owners ‘sell’ the proposition:

The Coombe at Penhein – Nomadic Tents in Monmouthshire

One of six Persian-inspired tents on a family farm, with woodlands for den-building and a stream to splash.  These are dome-shaped alachighs (pronounced al-la cheeg) of Persian design traditionally used by nomadic tribes in northern Iran. Nestled in a 3 acre ancient woodland in the Monmouthshire countryside, each has an individual colour scheme, a private flushing loo in a separate adjoining pod, its own fire pit and outdoor sitting area.

The Nancy Blackett – Shepherd’s hut in Somerset

A Shepherd’s hut for 2, the Nancy Blackett is perched on its own tiny island, completely surrounded by nature with a little wooden bridge to the mainland.  Guests can wake up on their own island, cook breakfast on the camp fire before rowing across for a swing in the hammock or to take a soak in the hot tub.

The hut’s footprint is small but cosy with its own wood burner; and guests also have the option to cook dinners and take hot showers in a separate wooden cabin on the mainland where there is even a wood fired pizza oven available for guests.

In Herefordshire, the New Inn Brilley offers a converted gypsy caravan – a completely original gypsy wagon full of unique touches located at the top of a wild hilly meadow with breathtaking mountain views.

The Roundhouse at Bodrifty Farm, Cornwall offers the romance of sleeping in an Iron Age Roundhouse.  Guests also have exclusive use of the Treehouse during your stay at the Roundhouse, built around a living tree, which has a kitchen, sitting room and bathroom.

Have you spotted a glamping business opportunity?

If you have land available in a beautiful location or setting, it could well be worth considering investing in providing suitable accommodation to offer glamping, as a useful way to earn additional income.  Purchasing tents, yurts, pods or huts  will involve some up-front investment so if you are looking for hospitality finance to fund your project our team at Stewart Hindley and Partners are here to help.

We understand the hospitality business through and through and are long-established specialists in securing hospitality finance and can offer you friendly and informative advice to help you build your glamping business.

Browse our site for case histories and more information about the process involved in securing hospitality finance or call us now to speak to our team of experts.

How Important Are Your Reviews?

Posted on by Carol Jones

With the increasing prominence of online holiday and travel search/booking engines and the rising power of the customer review across all industries, just how important are reviews and how can proprietors respond to them?

Our hospitality finance team of experts at Stewart Hindley and Partners take a look at the current trends and have put together their thoughts, to help proprietors get into the heads of their potential customers.

  • With so many hotels to choose from, trying to make a decision about where to stay can be daunting for people. Hotel reviews are therefore a valuable way to determine if a particular hotel is a good option and should not be under estimated.
  • The hotel’s rating score – astute customers will look at the rating score and sort their options to show them the highest ones at the top. A higher score means past hotel guests generally liked the hotel and enjoyed their stay with few, if any, problems. If you limit yourself to these hotels, you have a better chance of enjoying your stay as well.
  • But a few extreme reviews may not be as significant as people think. The number of reviews of the hotel on the booking site will be listed and it stands to reason that a hotel’s overview will be more accurate, the higher number of reviews it has.
  • Remember, what might be essential for one guest is completely different from that of another. Your potential guests will almost certainly look at both the positive and the negative things people comment on in their reviews, and look for things that might bother them.
  • People are now getting used to ignoring those that protest too much. If 30 people are raving about the hotel and one person says it was horrible for whatever reason, it was probably just a fluke. For genuinely good establishments, these days, one negative review is likely to be outweighed by a sea of positive reviews.

The common sense conclusion is for 21st century hoteliers to be mindful, but not dictated to, by their reviews.  It is worth monitoring them and responding in just a few cases – where relevant and in brief – to overly negative comments.  This is perhaps particularly the case, when it was perhaps a genuine issue for the customer, that has since been rectified your end.

That being said, it is definitely worth promoting and encouraging customers to leave feedback, but  there is a fine balance between encouragement and overplaying your hand.

Once guests have researched their shortlists they will more than likely visit your hotel website for further information which is why it’s also worth investing in a professional website and keeping it up to date.

If you are looking to invest in upgrading your facilities in response to reviews, or need to boost your marketing spend, you may need hospitality finance to fund your initiatives. Contact our friendly team of specialist advisors now for advice and information on the latest hotel finance and other hospitality finance packages available today.

Source:
http://travel-made-simple.com/how-to-read-hotel-reviews/

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