Everything You Need to Know About Commercial Mortgages

Whether you’re thinking of investing in a property for your business or you want to free up equity from an existing property, a commercial mortgage could be the answer.

Here’s our guide to everything you need to know about commercial mortgages.

What is a commercial mortgage?

A commercial mortgage is a mortgage that is specifically designed for buying or refinancing land or property for business purposes.

Commercial mortgages are typically available to cover 70 – 75 percent of a property’s value, and usually last between three and 25 years. Business mortgage plans differ from standard residential mortgages in several ways.

You’ll likely have to pay a higher interest rate than a residential mortgage and there aren’t generally any fixed rates available. However, in comparison to business loans, commercial mortgages do tend to offer better rates as they are secured against the property.

Is a commercial mortgage right for you?

If you’re a business looking to purchase a property or release value from an existing building, which can then be re-invested into the business, a commercial mortgage could be for you.

There are several benefits to taking out a commercial mortgage, for example:

  • The interest paid on a commercial mortgage is tax deductible
  • If the property increases in value, your equity could also increase

Is it hard to get a commercial mortgage?

Anyone can apply for a commercial mortgage, from small start-up businesses through to large, well-established enterprises.

Of course, like any mortgage, to qualify for a commercial mortgage, you’ll need to pass your lender’s eligibility checks and meet certain criteria. These checks typically analyse:

  • Cash flow and any debts
  • Projected income
  • Your ability to pay a deposit, usually ranging between 20 – 40 percent of the loan amount
  • General income, credit and assets

Just like a residential mortgage, it’s important to search the market for the best possible deal available. What’s more, commercial mortgages are generally quite complex, hiring a specialist broker can help make the application process far easier, while ensuring that you get the best deal on the market.

At Stewart Hindley Commercial Finance, we’re experts when it comes to commercial lending. With extensive market experience and knowledge, we can provide information and advice, and source the best possible deals.

Get in touch for a free, no-obligation consultation to discuss your commercial mortgage requirements.

Thinking of Selling your Hotel?

Thinking of Selling Your Hotel? Here’s How to Know it’s the Right Time

As an established hotel owner, you may perhaps have entertained the idea of selling your business. You may understand that timing plays a part in such decisions. But is now the best time? And how will you even know when that ‘best time’ actually comes around? It’s rarely an easy call to make, so here’s a few things you should consider.

Reasons for selling

Sometimes you may just have to accept the fact that you can’t really control your need to sell. Other aspects of life which cannot be put off may simply intervene. You, or your partner, may be suffering poor health, or you may have to face divorce or some other family crisis. Equally, you may be fast approaching retirement, or have been presented with some need to liquidate your assets which must take priority over your business responsibilities.

More often, as a hotelier, you may notice a relentless downward spiral in profitability. Whilst some owners catch the problem early and are able to take remedial measures, others may find things have gone far beyond any hope of retrieving the situation.

If your accommodation business is performing poorly with little hope of an upturn, then taking the decision to sell may be your best chance of selling at an acceptable price. In such unfortunate circumstances it may be best to salvage what you can rather than risk a further decline.

On the other hand, some hotel owners may recognise that their soundly performing business is presenting them with a golden opportunity to sell on their own terms. A business with a good track record will usually sell for a better price, and often sells far more quickly too. And this is especially so where the owner can show that profits are on a sustained upward trajectory.

Research the market

To determine your sale prospects, or even simply to optimise the outcome once you are nearly ready to commit, it will always pay to carefully research the market. Whilst that is likely to involve seeking professional opinions, it should also involve a thorough personal investigation. It’s only by immersing yourself in such detail that you can get a proper ‘feel’ for market conditions.

For instance: Are local sector trends a reflection of regional market conditions? Or are there local factors which are exerting a stronger influence? And considering the national picture: What do the long-term sale statistics say about the future prospects for the hotel industry? And what seems to be the optimum time of year for selling with a view to securing the best return on your investment?

The hotel industry is one that fluctuates and so you will need to keep a careful eye on what the future trends are. There are three main factors that will impact the value of your hotel: the profit that your business is making, what multiple of the profits the buyer is willing to pay and the condition of the business. Make sure that you are in a positive position with all three of these factors where possible if you want to make a good return on your investment.

Threats and opportunities

You may know some local owners are about to retire and close down, or be aware of plans for major leisure and tourist developments about to occur in your area. Indeed, such information may be just what you need to hear to give you an ideal chance to present your business as being rich in potential.

Or alternatively, you may have been advised that a national hotel chain has earmarked your town as a likely location for expansion, or perhaps you have lost some of your best staff who have proved well-nigh impossible to replace.

Whatever the scenario, if a hotel sale could be on the horizon, you must remain alert to how such developments could affect your prospects.

You should also identify whether there are areas where your business could expand in the future so that buyers can be promised the chance for expansion. Is there is the potential for more rooms to be added? Could a restaurant or spa be included as part of the business?

Assess what pre-sale preparation is required?

If you can afford to sell when you’re ready, you should also consider what pre-sale preparation will be necessary to get your business up to the mark in order to prepare for a listing. If you have a well-run hotel in good health with strong bookings, perhaps also supported by strong local patronage, you must also have the evidence to prove the worth of your business.

One extremely important element here is your business paperwork, which must be in excellent order. Any serious buyer will never take your word alone. They will wish to see historical evidence of your trading revenues, and much else besides.

Have clear documentation of the occupation rates and how this fluctuates during the year. You will also need to do an audit of the stock that will included at the time of handover of the hotel.

In addition to exemplary paperwork, your premises should be in good repair and decorated to a good standard throughout. But beyond maintenance, and just as important, you should ensure your hotel is equipped in a way which reflects the latest industry trends and emerging technologies.

This extends beyond micro-details such as contemporary coffee facilities in your rooms, and should certainly include an overhaul of your (hopefully) mobile-friendly hotel website as well as your booking systems and digital marketing strategy.

By Matthew Hernon is an Account Manager at Dynamis looking after Business Transfer Agents and Franchises across BusinessesForSale.com and FranchiseSales.com.

Expectations for Hotel Financing In 2018

In broad terms the most honest and accurate way to describe the British economic outlook is “uncertain”. We take no pleasure in saying this, but there is no hiding from it. There are several well documented factors contributing to this, ranging from ‘Brexit’ through to global concerns.

An easy assumption to make when faced with this is that an “uncertain” economic outlook is defined as “doom and gloom”. This is not the case. Whilst no sector is completely insulated from the impact of current events, not all are adversely affected. In order to best illustrate this we’d like to take a look at the expectations for hotel financing in 2018 and beyond.

Our specialist financial experts rely on knowledge and information in order to provide the best service possible for hotel financing. A key example of this is reading, understanding and implementing the economic studies and forecasts for the hospitality sector. The most recent of these to be published is the PwC UK Hotels Forecast 2018. It makes fascinating and informative reading.

The report notes that the overall UK GDP growth for 2018 is anticipated to be 1.4%, a slight drop on the 2017 figure. For hotels, however, the RevPAR (revenue per available room) growth figure is expected to be 2.3%. This is based on a hotel room occupancy rate of 76%, a figure which is highly likely to be achieved.

What we believe this represents is a confidence in the strength of the UK hospitality sector. It also means that hotel financing in 2018 will remain available, despite the uncertain economic outlook in a general sense.

In order to understand how the RevPAR growth is expected to outpace GDP growth we must consider the consequences of the current uncertainty. The weaker Pound Sterling is the factor which has, as strange as it may sound, been of the most benefit to the sector.

2017 has shown that a weaker Pound Sterling can deliver benefits to the hospitality sector. This comes via two streams. Firstly, a weaker currency exchanges sees a far higher number of UK citizens opt for a “staycation” holiday, as it provides better value. Secondly, from the other side of the exchange rate the UK becomes a far more attractive holiday destination for overseas visitors.

At Stewart Hindley we are moving ahead with confidence about hotel financing in 2018. The factors which make the UK hospitality industry successful remain in place, despite any general economic uncertainty.

There are many lenders who will see hotel financing in 2018 as a primary investment goal. Gaining access to this finance relies on you getting the best people possible involved on your behalf. At Stewart Hindley we have a proud track record for being the best people. We are here to help you secure financing for your hotel or hospitality business. Please contact us on 01488 684834. We’re looking forward to hearing from you!

The UK’s Top 5 filmset location places to stay

Is your guesthouse, hotel or self catering accommodation located in a region famous for being the scene of films or television dramas?

Many UK holidaymakers love to see these places in the flesh and it’s even more of a bonus if they can stay in a property which featured on the film sets. Here is The National Trust’s Top 5 filmset cottages:

  1. POLDARK

Lacombe Cottage, Port Isaac

A former fisherman’s cottage with bags of Cornish charm and just a few paces to Port Quin’s beach, Lacombe was used as Captain Blamey’s house in the most recent TV series of Poldark.  Its low ceilings, original open beams and a solid-fuel stove all add to the charm and character of this exceptionally pretty former fisherman’s cottage.

  1. HARRY POTTER

The High Street, Lacock

A number of magical scenes from the Harry Potter series were filmed in Lacock Abbey and Village in Wiltshire, including parts of The Philosopher’s Stone (2001), The Chamber of Secrets (2002) and The Half Blood Prince (2009).  National Trust holiday guests can stay in their Lacock timber-frame cottage, 2 High Street, which was also used to house Judi Dench and Imelda Staunton for the filming of costume drama Cranford.

  1. SWALLOWS & AMAZONS

Rose Castle Cottage, Coniston

This cute stone cottage initially inspired Arthur Ransome when writing Swallows and Amazons and provided the backdrop for the lake scenes. It’s a two-bedroom cottage which will leave you feeling all warm and fuzzy inside with its pretty 19th-century charm and cosy interiors. The two-bedroom stone cottage sits alone in the landscape just above beauty spot Tarn Hows, with no neighbours in sight.

Free of modern technology and carefully restored to retain its original character, it’s the perfect retreat to escape the trappings of modern day life. It’s the simplest things, like warming against the log-burner after a long day hiking, or waking up to views of green fields and mountains that make this cottage so special.

  1. GAME OF THRONES

The Potters Cottage, Strangford, Downpatrick, County Down

Go behind the scenes of Game of Thrones and step into a medieval fantasy when you stay in this two-bedroom stone cottage. It sits on the historic farmyard of Castle Ward, which provided the backdrop for Winterfell in the first series.

Key scenes from the drama will unfold right from your doorstep; from the Whispering Wood to the clock tower just next to the cottage. There’s even a replica of the Winterfell Archery Range in the courtyard.

Escape the world of dragons and battling kingdoms when you close the front door of this cosy little nook

  1. JANE EYRE

White Edge Lodge, Near Sheffield

White Edge Lodge in Derbyshire made a star turn in the 2011 adaptation of Jane Eyre with Michael Fassbender and Jamie Bell. The lodge featured as the home of the Rivers family who take in a troubled Jane after she flees from Mr Rochester.

Standing alone on a vast expanse of heather moorland with all-encompassing views of the Peak District, White Edge Lodge is sure to excite. Formerly a gamekeeper’s cottage, much of its original features remain inside, such as exposed brick walls, wooden beams and most intriguing of all, the former game cellar, which now hosts the kitchen. Its highlight though, is most definitely the upstairs roll-top bath which looks out over 20-miles of stunning views.

What is your ideal hotel location?

If you are considering starting up self catering cottages, a bed and breakfast or a hotel you will no doubt be comparing a number of possible property locations and identifying their unique attractions, as part of a business plan.

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

Stewart Hindley Partners have many years of experience in the hospitality sector and can offer specialist finance including bed and breakfast funding and hotel mortgages.

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.

Source: https://www.nationaltrust.org.uk/features/film-set-cottages

How To Deal With Complaints – Dos And Don’ts

Guest house and hotel owners will inevitably be required to respond to the occasional case when guests feel they have had a slightly less-than-perfect stay.  So, what is the best way to handle complaints?

Leading hospitality finance experts Stewart Hindley & Partners have put together a few handy list of ‘Dos’ and ‘Don’ts in these situations:

DO

  • Focus on providing a great customer experience with attention to detail and set realistic expectations before guests arrive. That way, you can ensure that you don’t give customers a reason to complain in the first place.
  • Be ready for those few complaints that you might get. This means being sure you know your establishment inside out. You want to be ready for almost any question, or tackle any issue, that your guests could possibly think up.  You should also decide what your stance will be when a customer confronts you, what your policy is on compensation and how you will validate a complaint.
  • Anticipate – have an outcome ready for as many complaints as you could think of, so try to bring the topic on to this, so as not to draw out the length of the discussion.
  • Stay calm, even if the guests are worked up themselves. When a guest does decide to make a complaint, it’s important to think about your tone of voice, staying polite at all times and choosing your words carefully – especially if the complaining guest is quite animated.
  • Be sure to also take the nature of the complaint on board, and look to improve whatever it is that went wrong for the guest. For example, look into upgrading a bed if guests complain it is uncomfortable.
  • Endeavour to bring about a speedy conclusion to all complaints. Delaying will only escalate the issue.

DON’T

  • Misrepresent or over-promise clients with your promotion. For example, make sure that any promotional images you use are a realistic representation of your establishment. Use a good photographer to capture all of your ‘best sides’, but don’t mislead with images of views which do not apply to your rooms.
  • Don’t feel you necessarily have to agree with everything that the complaining customer is saying – especially if you feel that some or all of what they’re saying is unfair. A better way to ‘diffuse the bomb’ is to acknowledge what the customer is complaining about, and try to shift the conversation on to the resolution.
  • Don’t dwell on the complaint because, more often than not, a negative can be turned on its head to become a positive. Look upon it as an opportunity to impress with how responsive you are to complaints and to ‘practise’ your customer service skills.
  • Don’t forget to treat the experience as a learning curve – to get even better at handling these situations in the future. Use it to hone your customer service skills, taking on board the criticism and using it to give your guests better experiences every time they come and stay with you.

Need a helping hand?

If you are looking to start or grow a  bed and breakfast or hotel business, the chances are that, at some point, you will be seeking out bed and breakfast funding or hotel mortgages.

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 hospitality finance. 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, or call us now to speak to our team of experts.

Source:
https://eviivo.com/trade-secrets/customer-service/customer-always-right-deal-difficult-guests/

Overseas visitor numbers and spends reach record highs

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?

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

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/

 

How Important Are Your Reviews?

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/

Top 10 English Hotel locations

Last month a panel of experts for the Daily Telegraph put together a guide to 10 of the best places and cities to visit in England, highlighting their attractions for family holidays and couples, providing a host of learnings for anyone looking at taking over, or starting/locating, a hotel business in the UK:
Continue reading “Top 10 English Hotel locations”