Investment Opportunity for a stunning Grade II listed 4 star hotel in SE England – (Ref. RSS/RD)

Investment Opportunity for a Grade II listed, 13th Century Country House 4 Star Hotel. Comprises of 32 en-suite bedrooms, 2 banqueting rooms, 3 meetings rooms, a bar and various lounge areas. Throughout the property there is the original stone flooring, grand fireplaces, beautiful wooden panelling and original architectural features. The Hotel sits in 12 acres of land with perfectly manicured gardens, outdoor pool, tennis court, 5 bedroom separate cottage and large lawned grounds. It is licensed for wedding ceremonies both on the outside grounds and elegant banqueting rooms. The hotel currently employs 40 full & part time members of staff.

The 32 rooms consist of 20 standard, 6 superior, 4 junior suites, 2 grand suites. All rooms are light, airy and very spacious. Each room will be refurbished using designer fabrics, designer wallcoverings, heritage paints, lighting, rugs & soft furnishings. 

The aim is to retain the beautiful historical 15th century features but to add luxury amenities of the 21st century that the modern day traveller requires. It is estimated that works will take 2 months and the hotel will be closed for 1 month, which will include building a permanent hard marquee structure with own commercial kitchen and bathrooms within the grounds. This will include the installation of solid wood flooring, carpeting, stage, bar, banqueting furniture, state of the art lighting and sound, where the marquee alone, will accommodate 300 guests for seated dinner & dance. 

A business plan is available where the plan will be in Year 1, to raise room occupancy from average 62% to78%, grow the wedding and events business from 15 to 25 events per year. Improve internet reviews and hotel reputation as well as promoting to a wider demographic of guests. By refurbishing all bedrooms & providing facilities that guests require, a higher room rate can be achieved and will appeal to a broader market of National & International guests. The rooms are spacious, bright with many original features and antique furniture. The hotel is ideally located near to many major attractions and activities.

From the current financial position of the hotel, the business plan indicates that EBITDA can be increased from £397k to £845k by 2022.

To achieve this plan, an investment of £4.3m is required, with our client contributing £1m to buy the business (debt free), stamp duty/legals and renovation works. For this equity investment, an offer is provided for 80% of the shares. A dividend policy would distribute 85% of the profit after tax from year 2 onwards, using the profits in year 1 to build working capital. Based on the business plan, a dividend yield of around 7.4% to 8.5% is expected. There would need to be a 5 year commitment to the business. The business cab be sold as a strong going concern if the investor requires
an exit plan, with our client remaining as the manager of the business and minority shareholder.

For further details and business plan, please complete the form below:

Reference No: RSS/RD

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