WINTER 2018 • SPOTLIGHT • 19
This boost to revenue was much needed amidst some challenging trading conditions. Staffing continues to be an issue, with increased wage costs and a shortage of casual labour due to rising housing prices, associated with the second homes market, driving locals away; some local councils have made attempts to legislate against this but more will need to be done to solve the problem. Rising food costs, utilities and business rates continue to put pressure on margins for many.
The strength of the market was best demonstrated through the marketing by Colliers International of the Richardsons Hotels Portfolio in the early part of the year. This was a portfolio of large hotels in landmark locations throughout the South West. Huge publicity was achieved by the marketing campaign and over 90 verified parties formally declared an interest. Significantly a large proportion of these potential buyers were overseas investors that had previously not considered the UK regions.
The sale of two of the hotels was successfully concluded, rescuing the group from Administration. The Harbour Hotels group secured the 58 bedroom Metropole Hotel at Padstow and the 37 bedroom Fowey Hotel at Fowey. Both properties offer unrivalled locations at the heart of highly desirable harbour towns and will be hugely complimentary to the rest of the Harbour Hotel portfolio. Both hotels offer significant development potential, subject to the necessary consents, and it will be exciting to see them evolve over the coming years. Both properties exceeded their guides of £10,000,000 and £5,500,000 respectively.
The sale was widely lauded as a fantastic result and a significant vote of confidence for the region. There is no disputing these are prime assets that attracted the interest of some of the world’s best hoteliers. As one interested party put it: “they simply aren’t making any more of them”.
The private market continues to perform. After a successful marketing campaign, Colliers International completed the sale of the historic Old Ferry Inn at Bodinnick, a stunning 12 bedroom coaching inn on the banks of the Fowey estuary. This was sold to a first time entrant to the hospitality industry who is now fulfilling a lifetime dream of running an inn after a career in the manufacturing industry.
The sale of the Black Bear Hotel at Wareham is also hugely encouraging - this property had appeared on Channel 5’s Hotel Inspector and had struggled for many years. Under new ownership it has now closed for refurbishment. The Grade II* listed, 15 bedroom coaching inn will soon re-open as a privately owned up market café with top quality letting rooms.
These transactions, and the strength of interest received throughout the marketing campaigns, confirms the health of the South West hotels market, with plenty of ready, able and willing purchasers across both the private and corporate markets, all eager to capitalize upon the recent upturn in trading performance.
Ferry
Black Bear
Colliers International
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