Latest closure just a 'sign of the times' says estate agent
NEWS that three of the largest hotels in Torquay are once again heading for new ownership is a sign of changing times for hotel industry.
Stephen Lofthouse, director at Bettesworths, looks at why hotels turning over hundreds of thousands of pounds are still getting into trouble, and how hotels and Torbay as a hotel based resort still has a bright future. He says:
"The market for hotels has changed considerably since the boom between 2000 and 2007 in which prices rose considerably on the back of property market increases and easy to borrow mortgages at high loan to value percentages.
"The problem in the aftermath was that seasonal trends and cash-flow implications of running a hotel business had not always been fully considered.
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"This, combined with the difficulty of obtaining further bank support following the credit crunch, has meant there has been a number of hotel business experiencing difficult financial decisions.
"As always there are winners and losers in all markets and at Bettesworths we have seen an significant increase in new buyers coming into the market.
"Many are able to purchase without bank or mortgage assistance who see the hotels at the reduced prices being extremely good value for money and excellent business opportunities.
"In the future this will be a considerable benefit for Torbay as a holiday resort as more often than not the new buyers invest in improving the fabric, condition and facilities in their newly purchased hotel which has the effect of improving the hotel product and reflecting well on the resort as a whole.
"Many of our hotel clients have reported positive trading results for this year despite the poor weather conditions and are looking forward to a successful autumn.
"The season is traditionally a good trading period due to the local climate being recognised as mild at that time of the year and as people without children look to take advantages of the resort's amenities in a slightly quieter season.
"The outlook for hoteliers buying at the moment and investing in Torbay looks good".