Hotel For Sale – The Royal Hotel
Christie & Co UK are delighted to market for sale The Royal Hotel located on the Isle of Wight in England.
- 51 ensuite bedrooms
- Extensive function/private dining facilities
- 33 car spaces plus 6 electric car charging points
- Landscaped gardens in picturesque location
- Net turnover y/e March 2023 £3,093m
- Outdoor heated pool – Panoramic sea views
- Staff & owners’ accommodation – Extensive car parking EPC: TBC
Description & Location
The property comprises a Georgian building dating back to circa 1832 which was subsequently extended in the 1920s when owned by the Trust House Group. At the front of the property is original wrought iron loggia and an entranceway incorporating the hotel signage. Timber casement and sash windows make up the fenestration. Internally the property is laid out over four floors. It also has an additional area of land on the opposite side of the road which rises above the hotel and directly overlooks the sea.
The main restaurant can accommodate approximately 150 guests when laid out for functions, but typically only accommodates up to 90 guests for usual hotel use.
At the rear of the main car park is a two bed manager’s apartment with ground floor storage. There is a house of similar stone construction to the main building of part three storey (road elevation) and part four storey (rear elevation) which comprises eleven staff bedrooms and a former ground floor nightclub currently used for storage.
The front garden incorporates a number of seating areas, an outdoor heated swimming pool and has mature, quality landscaped gardens. The whole site extends to approximately 5,832 sq m (1.44 acres).
Ventnor is situated along the Isle of Wight’s southeastern coast. Ventnor was made fashionable by Queen Victoria’s visits to the town (including The Royal for tea on occasion), and is now referred to as “Mayfair by the Sea” and the “English Mediterranean”. The property is located close to the cliff edge in the town of Ventnor and is well connected to the Isle of Wight road network. To the rear of the hotel the A3055 coastal road connects Ventnor to the two main resorts on the south coast of the Island, Shanklin (4 miles) and Sandown (6 miles). Communication links are good with the county town of Newport 11 miles to the north. Vehicle ferry services to the mainland run from Fishbourne to Portsmouth, East Cowes to Southampton and Yarmouth to Lymington. The closest of these to the Property is Fishbourne (13 miles). The Isle of Wight has a population of over 140,000 people and attracts approximately 2.4m visitors annually. The hotel is nestled into exotic south facing gardens overlooking Ventnor’s stunning coastline.
The property has a TripAdvisor certificate of excellence showing that 71% of reviews give the hotel excellent ratings, and 92% say the hotel is either excellent or good. The Property is an AA four-star hotel with a two AA Rosette restaurant. Listed in the Good Hotel Guide and is rated 8/10 by the Daily Telegraph website where guests can also book rooms. The Property also markets itself throughBooking.com and Expedia (selectively) and the Isle of Wight Tourist Board. The hotel is predominantly a seasonal business, although it does not close in the winter months like many hotels on the Isle of Wight. The hotel has received two AA rosettes for its cuisine for the 26th consecutive year, making it the main attraction during the winter months.
Financial Statements for the 12 months ending April 2022 show net turnover of £3,637,090 (inc Govn’t grants) with an EBITDA of approximately £747,572 (excluding Govn’t grants). Trading Period y/e April Net Turnover £ 2019 FS 3,101,813 2020 FS 2,808,036 2021 FS 1,357,053 2022 FS 3,637,090 2023 (to March 23) MA 3,093,711 Key: FS – Financial Statements MA – Management Accounts Occupancy % ARR £ ADR £ 2023 (to March) 52.5% 130 142
Rateable Value as at 1st April 2023: £224,500. All mains services are connected to the property.
Value Enhancement: The eleven-bedroom staff house to the rear of the hotel provides significant potential to add additional letting bedrooms to the hotel inventory. Alternatively, self-catering apartments or short or longer stay holiday accommodation/conversion to residential accommodation could provide significant upside in terms of asset value enhancement subject to obtaining the required statutory planning consents. In addition, the land to the front of the hotel off Belgrave Road offers a variety of hotel ancillary uses including glamping, tree houses, letting pods and or enhanced food and beverage offerings either on a temporary or permanent basis subject to obtaining planning permission.
Freehold. Offers on a guide price £3,750,000 for the freehold interest are invited on an asset sales basis as a TOGC.