Leading specialist property adviser Christie + Co are having another bumper year in hotel transactions market across Devon, Cornwall & Somerset.
Matthew Smith, Director of the Exeter office comments; “Although 2014 showed significant growth in hotel transactions across the South West, we are still experiencing further growth throughout 2015 as a result of the banks re-entering the hospitality sector and showing greater appetite to support buyers keen to acquire profitable hotel businesses. This extends to first time entrants to the hotel sector, as well as experienced hotel operators and investors. Once you add in the overseas and UK based high net worth individuals the buyer pool has almost doubled in size within the last 18 months and our hotel clients have seen the benefit of this, resulting in significant increased transactional activity.”
Smith continues; “Occupancy across the South West region is ahead of last year, but more importantly revenue per average room has shown robust growth and is up by an impressive 14% on 2014. This is supported by an encouraging increase in foreign visitors electing to holiday in the UK, with visitor numbers up nearly 20% when compared with five years ago.”
Over the past few weeks Christie + Co have completed on a number of bank funded hotel transactions including:
Talland Bay, Nr Looe, Cornwall sold as a result of Christie + Co’s comprehensive marketing campaign which appealed to a wide number of interested parties with three guide price offers being received and applicants keen to inherit the annual adjusted net profits of circa £300,000. The successful purchaser, Dr Kevin O’Sullivan, decided to diversify into the hospitality sector after having spent many years building up a successful care home business which he continues to own and operate under management. Talland Bay was sold off a guide price of £2.5m and exchanged contracts within matter of weeks from agreeing the sale with the assistance of Christie Finance who were able to source a competitive commercial loan.
The Bay Hotel, Coverack was snapped up in a matter of days of coming to the market. Christie + Co received instructions from the House family who, over many years have built up a strong and loyal custom base with the benefit of many repeat customers coming back year after year knowing they will receive impeccable service from the family run 14-bedroom hotel with stunning sea views. Businessman Nick Sanders who purchased the hotel could see the benefit in the hotel and the family and agreed to purchase the business off a guide price of £1.55m with an agreement for the majority of the family members to continue their employment.
Acting on behalf of experienced hoteliers Jane & Roy Carson, Christie + Co successfully sold The Old Quay House, Fowey. As a result of Christie + Co's marketing campaign the business attracted considerable interest due its waterfront location, the outstanding condition and the consistent profits year on year. The successful purchaser was Joe Bester of Fairtree Hospitality Real Estate, a South African based business seeking a foothold in the UK hospitality market. The Old Quay House sold off a guide price of £1.95m.
The Carlton Hotel, a 47-bedroom hotel in Ilfracombe, with Christie + Co acting on behalf of Claire Jelfs, a sale was agreed within weeks of receiving the instruction. The successful purchasers are experienced hotelier Michael Reberio and his business partner Eliot Wren from London who worked closely with Christie Finance who successfully sourced bank funding. The Carlton Hotel was sold off a guide price of £795,000.