Tag: B&B advice

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.

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/

Five Key Factors To Consider When Converting A Home To A B&B

Posted on by Carol Jones

If you are thinking of running a bed and breakfast business from your UK home, this will almost certainly involve significant finance considerations.  Our specialist team of b&b finance advisors, here at Stewart Hindley, have identified 5 key factors which will come into play:

  1. Planning Permissions

Whether or not you will need building planning permissions will depend on the amount of building work required and will be subject to the local authority’s usual residential planning guidelines.

If you are converting more than one or two bedrooms, you may also be required to apply for ‘change of use’ and your local council should be able to provide advice.

  1. Building Regulations

The building regulations which apply to bed and breakfast establishments change quite regularly, particularly with regard to health and safety regulations, so it’s vital to refer to an up-to-date source of information.

Different regulations will apply depending on the size of your house and the number of guests you want to accommodate.  At minimum, you are likely to have to install things like fire doors, emergency lighting and fire safety signage, and the kitchen will probably need some work too.

Bed and breakfast businesses are also required to offer separate washing and toilet facilities for your family which won’t be used by guests and you may find that this involves quite a lot of unexpected work.

  1. Fitting Out Costs

Furniture and fittings will need to be of good quality to withstand constant use, and soft furnishings and beds etc will need to comply with current fire regulations.

To attract guests in a very competitive UK b&b market, allow enough in your budget to make communal areas like dining rooms and lounges, clean, bright and fresh.

  1. Advertising and Marketing costs

The hardest part of advertising and marketing is to come up with your image and style.  We would advice setting some money aside to commission a graphic designer to come up with a logo and brochure material to give a professional look to your website and promotional materials.

Spend time researching the local market and the search engines, like Trip Advisor, which are likely to be most effective at attracting the clientele you are seeking to attract.

  1. Do you have a b&b mortgage?

If you are thinking of running a b&b from home, you are legally required to advise your current mortgage provider of your intentions.  Most residential mortgages do not allow you trade rooms, so you would need to re-mortgage onto a commercial mortgage –  but don’t worry because our team at Stewart Hindley & Partners can advise you.

There are a limited number of lenders who will allow 1 or 2 rooms to be let on a residential mortgage, but it has to be done in agreement with the lender.  If a lender realises that you are trading on a residential mortgage they can call in the loan due to breach of covenant.

Trading on a residential mortgage can have serious consequences.  You could be forced to re-mortgage and in some cases, if your trade income is not enough to cover the amount of debt involved, this may not be possible. The worst case scenario may be that you lose your home as well as your business.

We strongly recommend that you don’t wait until it’s too late and look to take out a commercial b&b mortgage from the start.

Contact us now for friendly and professional advice based on many years of experience in the bed and breakfast and hospitality finance sector.

Sources:

http://www.startabedandbreakfast.co.uk/b-and-b-how-do-i-convert-house.html

Are you dog friendly yet?

Posted on by Carol Jones

If you run a hotel or B&B and you don’t currently allow your guests to bring their dogs, you are potentially missing out on a rapidly growing market in pet travel. British dogs are increasingly regarded as a member of the family, with many owners seeking to take their four-legged friends with them when they go away.
Continue reading “Are you dog friendly yet?”

Are you dog friendly yet?

Posted on by Carol Jones

If you run a hotel or B&B and you don’t currently allow your guests to bring their dogs, you are potentially missing out on a rapidly growing market in pet travel. British dogs are increasingly regarded as a member of the family, with many owners seeking to take their four-legged friends with them when they go away.
Continue reading “Are you dog friendly yet?”

Thinking about buying a B&B?

Posted on by Carol Jones

It’s not just making a few beds and cooking a breakfast, there are a host of things you should know to help you make a success of your new business.

Where can you find good advice and benefit from the experience of other owners? Well, the internet is an obvious place to start but going on a course specifically designed for B&B owners can be much more valuable.
Continue reading “Thinking about buying a B&B?”

The best B&B courses available for prospective owners

Posted on by Carol Jones

If you’ve dreamed of owning your own bed and breakfast or guest house for a while, you’ve no doubt read many wonderful books, blogs and guides on how to make it happen. However, you still haven’t taken that first step yet – perhaps your confidence is holding you back, or maybe you have questions you need answering.
Continue reading “The best B&B courses available for prospective owners”

Did You Know You Can Attend a B&B Course?

Posted on by Carol Jones

When starting a new venture it is always a good idea to get as much information on the area in which you choose to go into.  You probably think that running a B&B or Guest House is fairly straightforward and on the whole it is, however, it is not just cook a breakfast and change some beds.

Continue reading “Did You Know You Can Attend a B&B Course?”

How to turn your home into a successful bed and breakfast

Posted on by Carol Jones

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.

1. Could you attract business?

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?

2. Decide if running a bed and breakfast is for you

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.

3. Know what you’ll need finances for

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.

Buying a B&B
4. Choose the right bed and breakfast mortgage

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.

5. Get good advice

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.

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