With bank funding in the Hotel & Leisure market as scarce as it has ever been, Goadsby reports a noticeable increase in activity in the leasehold sector of the market, particularly for premises with lower ingoing premiums that can be funded without borrowings.
One such example to have recently been sold is the Blue Keys Hotel and Freehouse in Northlands Road, Southampton which attracted a wide spread of interest from hoteliers, publicans and caterers, given the 10 superior letting bedrooms and generous public areas it comprised. Blue Keys was sold to an experienced publican, who identified the value of the letting rooms, off a quoting price of £65,000.
Ian Palmer, Divisional Director, commented, “The freehold hotel market which is typical of this region has suffered terribly through a lack of bank support. Accordingly, the agent now has to be a little more imaginative, which was the case in the recent disposal of the 50 bedroom Bourne Hall Hotel on the West Cliff of Bournemouth. A deal was struck whereby the purchasers have taken occupation on a 12 year lease with an option to purchase at a rent that suited both parties. This transactional structure is becoming increasingly common in instances where a vendor has the financial ability to accommodate it. In the meantime we continue to seek out sensible lending policy which will inevitably materialise again at some stage looking forward”.
