Castle Hotel For Sale

Business description

Offers Around: £2,500,000 Freehold

The Castle Hotel, Conwy, North Wales Stunning ‘boutique’ hotel of 16th century origin on the main street of historic walled town with picturesque harbour. 28 superb bedrooms, stylish brasserie and bar, plenty of parking – over half an acre. £268,123 profits on (net) sales £1.37m. Offers around £2.5m F/H Manchester M60470 Taking its name from Conwy’s medieval castle, this superbly equipped and furnished ‘boutique’ hotel is in the main cobbled street of this historic walled town. The Castle Hotel has been rejuvenated in the last few years and is a real ‘gem’. Combining beautifully crafted and designed bedrooms with contemporary informal dining; the business is both profitable and efficient to run. Unusually for a town hotel, the Castle has its own large car park – in fact the site is the largest within the town walls, with the exception of the neighbouring St Mary’s Church. Conwy is famous for its Edwardian castle, and its three quarter mile circuit of ancient walls, which together are recognised as a World Heritage Site. From the walls, there are outstanding views of the Conwy Estuary and the mountains of Snowdonia beyond. The picturesque harbour is just a short walk from the hotel. Such attractions underpin the hotel’s leisure business, whilst the High Street footfall guarantees a busy food trade. The quality of the hotel continues to attract people on business during midweek, an element that will benefit immensely from the new Welsh Assembly buildings at nearby Llandudno junction, forecasted to be home to over 600 civil servants in 2010. The present owners bought the hotel in 2000, after it had been in large company ownership for many years, and was somewhat down at heel. Since then, substantial sums have been spent on complete refurbishment of the bedrooms, a process which was completed only in March 2008. The back of house areas and public rooms have received similar treatment, including the restaurant, which has been altered from fine dining to a more informal brasserie operation, to meet demand from its customers. The directors have decided to sell to concentrate on their other businesses, leaving their successors with a business that is continuing to grow enjoying year round trade and with scope to extend at the rear (see below).

THE PROPERTY
The property is Grade II listed with 16th Century origins and is a local landmark, famous for its distinctive façade of local granite and Ruabon brick, all under mainly pitched slate roof coverings. The accommodation is on basement, ground and two upper floors with manager's flat in the eaves. There are modern extensions at the rear and the freehold includes a lock-up shop, which is currently let as a bookshop.

PUBLIC ROOMS
The main public rooms have recently been refurbished in crisp and contemporary style and these are approached through separate entrances, direct from the high street and also from the car park at the rear. The restaurant (usually set for 60) was closed for over a month during 2008 when it was converted from a fine dining venue to a more informal brasserie operation. The adjoining lounge/bar (usually set for 40) is now presented in a similar contemporary style, and this has also become much more of a food led operation. Lounge for residents (seating 20). The hotel also has two meeting rooms (for 20 and 10 delegates respectively – theatre style), approached via a separate street entrance from the High Street. The main public rooms are connected via an inner hallway with reception counter.

LETTING BEDROOMS
28 letting bedrooms (4 single, 10 double, 7 twin, 4 family rooms, 2 mini suites and a principal suite) all with private facilities en-suite. The rooms are classified as club, premium and deluxe. All have a private bathroom with WC except for two rooms with power shower/wet room. The principal suite has an eastern theme with its bedroom, hallway and separate sitting room. It also has a double spa bath with separate shower cubicle. There is another corner spa bath within one of the mini suites. Another feature room has a very grand oak 4 poster bed dated 1570. All of the rooms are centrally heated with thermostatic valves and are equipped with direct dial telephone, colour television with remote control and Freeview channels, radio alarm clock, wireless broadband internet connection, tea and coffee making facilities and hairdryer. The majority also have a trouser press. Premium and Deluxe rooms have Bose digital radio with CD player whilst the principal suite (Swit Caer Rhun) has two televisions, one with an integrated DVD player and a separate DVD player in the sitting room.

SERVICE AREAS
Well equipped back of house areas and kitchen with nonslip floor coverings and tiling, stainless steel equipment and canopied extraction. The kitchen which was renovated and newly equipped in 2004 incorporates a still area, service area, wash up and pastry section. Walk-in chiller and freezer and dry good stores. Various offices and ancillary storage.

STAFF ACCOMMODATION
Three room management flat in the eaves of the hotel with additional box room, kitchen and bathroom. Staff bedroom on the first floor with bathroom downstairs.

7 HIGH STREET Included with the hotel freehold is the retail shop (presently a book shop) which is let under the terms of a short term commercial lease.

EXTERNALLY
From the High Street, the original coaching entrance leads through to a spacious car park with additional parking on the opposite side of the road. With the exception of nearby St Mary’s Church, the hotel occupies the largest site within the ancient walls, the overall area being approximately 0.5 acres (unmeasured).

SERVICES
The Local Authority is Conwy. Mains gas, electricity, water and drainage. Central heating and domestic hot water supplied from two gas fired boilers.

2008 LISTINGS
AA 3 star (80% merit) 2 AA rosettes The hotel has membership of various marketing consortia including Best Loved Hotels, Welsh Rarebits and Fine Individual Hotels. The Castle was also awarded AA Hotel of the Year for Wales 2005/2006.

LICENCES
Premises Licence (PL0416)

TRADE
Management Accounts, as supplied by the owners in respect of the Year Ended 30th September 2007, shows £268,123 trading profits (before finance costs, depreciation and Directors remuneration) on (net) turnover £1,373,357. Based upon actual figures to date, being 8 months actual and 4 months projection, the owners predict net sales of around £1.4m in the Year Ending 30th September 2008.

PLANNING POTENTIAL
Conditional Planning Consent (0/24694 – now lapsed) was granted on 20th April 2001 for a first floor extension, including conference/banqueting room for 70, and alterations to the hotel. Planning Permission (granted 15th May 2008) obtained for new french doors to the rear and repositioning of the fire escape. The drawn plans show the lounge opening out to a new courtyard area at the rear.

PRICE
Offers invited around £2.5 million for the freehold property complete with goodwill and trade contents, but excluding personal items and trading stock.

METHOD OF SALE
The owners prefer to sell by way of a transfer of all of the shares in the owning company which will enable purchasers to take advantage of significantly reduced liability for stamp duty.

TO VIEW
All appointments to view MUST be made through the vendors' agents who are acting with sole selling rights.

Property information

Property:

Freehold