Leasehold Hotel Pub And Restaurant In Birmingham For Sale

Business description

The particular highlights of the business are:
- A long established business.
- A substantial business and property.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £450,000 with a net profit of £100,000 derived from the pub only at present (see financial summary below).
- A business with great potential which has not been exploited because the business requires an investment of £60,000 - £70,000 to invest in the refurbishment of the property.
- An easily run operation.
- Good loyal well trained staff.
- Low rent and rates.
- Very low overheads.
- Business enjoys superb local reputation.
- The concern provides a hotel, pub and restaurant opportunity.

History
Phoenix Business Transfer Agents are delighted to place onto the market this thriving pub and hotel which has been established since 1930. The business has been in the hands of the current owner since 2008 and they now wish to sell due to retirement.

Services
This very good business opportunity provides a public house, a large restaurant and hotel for up to 7 rooms. The premises also host many local events and acts.

Staffing
The concern employs 7 staff and the wages are £600 per week.

Owners Role
The owners are both involved in the day to day running of the business.

Marketing
No marketing or promoting of the business has recently been undertaken as the business is well known.

Competition
As far as competition is concerned there is healthy competition locally.

Market
The client base consists of locals and regulars with excellent weekend trade.

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Operate the hotel after refurbishments. The local rate is £50 per night and the business will have 7 rooms available.
• Open the restaurant. It has traded as an Indian restaurant in the past.
• More promotion of the function room.
• With the introduction of a website and e-commerce.

Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Property information

Property:

Leasehold

Lease terms:

The original length of the lease was 10 years with 8 years remaining. The rent is £50,000 pa with a review in 3 years. The lease may be renewable or negotiable for longer term if required. The rates are £2,600 pa.

Leasehold rent:

£50,000 per annum

Location:

- Situated in Stirchley area of Birmingham.
- Prominent location on main arterial road on a corner plot.
- A very large well placed detached building.
- Car park to rear.
- Surrounded by densely populated residential area with schools and other local amenities.
- Good volumes of traffic and pedestrian flow.
- Commercially thriving area.
- Well linked with the local motorway network.
- Area enjoying much growth and re generation.
- Excellent local demographics for this type of area.

Premises details:

This is a substantial freehold property. The ground floor contains the main bar area which is very spacious and has a gaming area and pool table. The function room is very large and hosts lots of events. There is also a 50 seater restaurant which has a large kitchen. The cellar is on ground level.

Business Operation

Expansion potential:

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Operate the hotel after refurbishments. The local rate is £50 per night and the business will have 7 rooms available.
• Open the restaurant. It has traded as an Indian restaurant in the past.
• More promotion of the function room.
• With the introduction of a website and e-commerce.

Competition / Market:

As far as competition is concerned there is healthy competition locally

Reasons for selling:

retirement

Trading hours:

Monday to Sunday: 10 am – Midnight.

Employees:

The concern employs 7 staff and the wages are £600 per week

Years established:

1930

Other information

Support & training:

The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Furniture / Fixtures value:

£40,000 (included in the asking price)

Inventory / Stock value:

£10,000