Hotel/guest house market in Cornwall

Written by Theresa Tyack Tuesday, 16 February 2010 08:57

As established premier leisure agents in Cornwall, we are often asked by prospective clients and applicants alike, what types of businesses within the leisure sector are selling in the current market, particularly in relation to hotels, guest houses etc. It is obviously comforting to handle this question based on recent sales evidence and during recent weeks we have been successful in concluding deals in the popular resorts of Newquay and Falmouth on a coaching hotel, a successful quality guest house and a backpackers lodge in differing locations from coast to coast. Furthermore, applicant demand has created many other sale agreements, with completions earmarked shortly to benefit from the eagerly anticipated busy 2010 season.

Another question often posed, is what are the profiles of applicants currently buying and in this regard, it is pleasing to report a broad cross-section of purchasers who have been established hoteliers, hobbies-based purchasers, and first-time buyers of a leisure businesses. Some have taken redundancy and have used the opportunity to relocate and acquire a new vocation at the same time. We have also started to see the return of the lifestyle purchaser, seeking a semi-retirement acquisition, following an improvement of the market in the residential sector.

The majority of applicants do require an element of funding and our recommended brokers have confirmed that a few banks are active in the hotel and leisure sector. Given however, the financial instabilities of recent times, it is not rocket science to summarise that the better deals are given on low to mid range loan to value proposals, where the targeted business shows a record of established and successful levels of turnover, and net profitability.

Obviously time is of the essence in respect of a purchase or disposal, for the 2010 season so may we invite you to contact Miller Commercial to register your leisure requirement, or to discuss a potential sale when we can recommend a confidential and structured marketing strategy.

For more details on the availability of hotel and guest houses contact Russell Weetch on 01872 247005

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