Property of the Week – Royal Hotel, Stromness
Royal Hotel, Stromness
Offers over £550,000
The Royal Hotel in Stromness remains available to purchase as owners Karen and Gareth Crichton move to reduce their hospitality workload. The Royal has operated alongside The Ferry Inn since 2017, when the two hostelries were brought together to bring the benefits of scale, optimise staffing and management and better respond to seasonal variations in trade. It is well set up, however, to return to standalone operation with overs over £550,000 invited.
The Royal has operated only seasonally, with high occupancy in the rooms and steady bar trade from April to October, since the pandemic. There is a clear opportunity for new owners to reopen the kitchen for food service and return to year-round operations.
Current seasonal turnover with restricted service and opening exceeds £500,000 gross. A full-service operation, however, is projected to exceed £800,000 net of VAT, across the 10 ensuite bedrooms (currently 2 singles, 1 family, 2 twins, 5 doubles), popular public bar and commercial kitchen serving the comfortable 40 cover lounge bar, well-appointed 26 cover dining/breakfast room and the function room/bar seating up to 70 with licensed outdoor area.
The hotel has seen considerable refurbishment under the current owners with the bedrooms, kitchen and bars all of a good standard. There are modern business systems which include cloud-based EPOS, room and table reservations and online accounting. Business sales are through established OTAs and traditional travel trade as well as through its own website at: www.royalhotelstromness.com. The business is trading well and is ready for re-expansion.
Full management information, certified extract accounts and support with business planning and finance are available to prospective buyers.
Interested parties should contact Gareth Crichton on: garethcrichton@btinternet.com or approach Karen Scholes in confidence at: karen@scholesca.co.uk