Water Front Hotel Development Opportunity

The site is literally located on the beach water front and has been a successfully run as a well known hotel for many years.

The hotel has 19 ensuite rooms and two separate accommodation annexes including a car park for 20 vehicles. 

We have witnessed an independent valuation of the hotel at being £1.7 million. 

The property is currently in a very good condition and was refurbished in 2015 and 2019 whereby a new conservatory and kitchen / catering facilities were installed. 

The hotel benefits from having three large dining areas and offers a variety of lunches and meals throughout the day and evening. It also caters for weddings and funerals including golfing and other sea side events. There is also a large bar, a large outside seating area in front of the hotel and a large balcony seating area with lovely views. The rooms average a 70% occupancy throughout the year which is above average. 

A pre-planning application was recently submitted to the local authority to convert part of the hotel into ten number two bedroom flats that in principle was approved subject to further discussions and reports being submitted. We have seen this evidence. 

Since April 2020 the hotel rooms have been fully booked by the local authority to house homeless individuals and by doing so have been paying the hotel £70 per night per room thus creating a net profit rental income of £37,000.00 per month ! 

This arrangement is currently on going and under discussion with the local authority to extend on a six monthly rolling basis. The local authority also pay for full time security to be present to manage the occupants in case of any anti-social behaviour was to arise at a cost of £130k per year. 

Again with the local authority offering and paying for 100% occupancy the 

If and when the agreement ends the local authority will pay to refurbish each room at their own cost. 

With such a huge rental income we would highly recommend continuing with this strategy for now, since running costs are minimal and whilst doing so, continue with obtaining planning permission to convert the premises into flats so that we have that line up for future development. 

All of the above lends this opportunity towards being a lucrative investment and one that another party is very close to securing, so quick action will be necessary to secure this opportunity. 

Proposal 1:

• Agreed Purchase Price £1.35 million Deposit 10%
• Continue to rent the rooms to the local authority and Rent out the ground floor as A1 or A3 to a local business
• Potential / Guaranteed net rental revenue £420,000.00 per annum
• Apply for full planning for 10 flats whilst operating as stated above

Proposal 2:

• Convert the ground floor of the premises into A1 and or A3 and the rest in to 10 flats
• Estimate Conversion Construction costs £950k
• Planning, consultant and development Fees £30k
• Resale value 10 flats at £320k to £349k each £3.2 million plus
• Plus Ground Floor retail Rent or Sell £300k
• Total Sales £3.5 million