The Kilchoan House Hotel is a prestigious detached Victorian property, built in 1870, located close to the centre of the popular seaside community of Kilchoan. Purchased by the current owners three years ago, the building has enjoyed some significant upgrades to create this very successful operation. The hotel is well-known and long-established, and enjoys an excellent reputation for the quality of provision on offer. The owners offer a variety of entertainment options from live performances from local artists to quiz nights, all adding to the lively and popular pub atmosphere. With an excellent reputation for food as evidenced on various review sites, there is no doubt that the lease of the Kilchoan House Hotel offers an exciting opportunity. The business currently trades year-round, with the majority of trade occurring during the main tourist season (April to October). This spacious hotel offers guests an exceptional relaxing standard of accommodation in both the bar and restaurant areas. The 7 en-suite letting bedrooms are all of a high standard with external patio areas for al fresco dining with views over Loch Sunart. The opportunity to relax in comfort outside makes the most of the beautiful location.
REASON FOR LEASE
Having purchased the property in 2020 and upgraded the facilities to generate the successful operation it is today; the owners wish to move onto other business ventures.
The business is operating to an impressive level of profitability. Over the last few years, the vendors have invested extensively in the property by developing the ensuite facilities, growing the business capacity to offer more covers and thus increasing turnover significantly.
The Kilchoan House Hotel is a substantial detached villa of traditional stone construction under a slate roof, with a number of tasteful extensions. The property, has been extended to the side offering more space for owners’ accommodation and to the land side to provide a conservatory. Entrance to the building is via a main door which opens into a hall area on the sea side of the building. There are other entrances directly off to the conservatory, the kitchen and the owner’s accommodation.
On entering the sea side door, the restaurant is split to either side of the main hall, with the bar being accessed straight ahead. To the rear and left of the hall is the stair to the letting bedrooms. To the side and rear of the stair there is access to the kitchen. The kitchen also has direct access into the restaurant from the pass.
On the first floor there are 3 letting bedrooms and the hotel office. The hotel office is fairly large and could possibly be developed for other uses. This floor also provides access to the owner’s accommodation. On the 2nd floor there are 4 further letting bedrooms.
The business currently has a reliable and locally sourced team of staff, who are used to working throughout the hotel, thus making the staff very flexible and robust. The business operates year-round catering for tourists and locals alike. There is no tie to any brewery.
The business is the only local provider of food in the evenings throughout the year. The Ardnamurchan peninsula is a place of legend and myth, attracting visitors year-round with many staying within the area for a few days or more, providing a steady stream of recurring business.
The business also owns a new marquee of approximately 16m x 12m which can be used for external events (note that the premises licence may need to be adjusted temporarily to facilitate this).
The lively bar is a modern and inviting. The décor is fresh, offering a mix of bar stools, tables and chairs, in front of a large well-equipped bar. The bar has distinct areas; the snug with stove, the conservatory and the main bar area. The flooring is a mix of tiles and wood effect. There is the usual range of bar facilities. The bar caters to the pub trade and those who wish to enjoy a pub meal with lively environment and enjoy some chat with the locals. Entrance can be gained to the bar directly from the car park through the conservatory or though the sea side entrance. The bar can seat around 12 covers and the conservatory seats around 25 covers. Behind the bar is the cellar, where the beer pumps and cooler are located. This area also provides storage for bottled drinks.
The restaurant is located to the sea side of the building and accessed via a number of entrances to the hotel. This area is split over two large rooms set either side of the sea side access hallway. The areas are attractive with comfortable tables and chairs, in a recently decorated fresh and modern colour scheme with atmospheric lighting. The restaurant’s atmosphere is relaxed and offers a quieter dining experience where guests can enjoy good quality of food separated from the main public bar. The restaurant can seat up to 40 covers.
Entry to the guest accommodation is via the main stair to the 1st and 2nd floors.
In total, the hotel offers seven letting bedrooms which are all light and airy, and well-equipped with attractive furniture. All rooms have very comfortable memory foam beds and are centrally heated. The in-room services include TV, hospitality trays, safe and heated towel rails. Hairdryers and irons are stored centrally. The en-suites are presented to a high standard throughout with showers fed by a pressurised hot water system. The letting rooms are configured as follows:
Room 1 – King Size Bed with en-suite shower
Room 2 – King Size Bed with en-suite shower
Room 3 – Four Poster King Size Bed with en-suite shower
Room 4 – King Size Bed with en-suite shower
Room 5 - King Size Bed with en-suite shower
Room 6 - King Size Bed with en-suite shower over bath
Room 7 - King Size Bed with private facilities including dedicated shower and separate bath
All rooms (except the Four Poster) can take additional bed(s).
Above the kitchen prep area there is roomy staff accommodation for 2 people sharing a room and shower room. This area has direct access via the kitchen corridor from outside. Within the grounds there are 2 staff caravans, one with 3 bedroom and one with 2 bedrooms.
The hotel benefits from a large commercial kitchen. The kitchen is fully equipped including large gas range stove, 2 friers, hot plate, ovens, all with an overhanging canopy connected to a grease filtered extraction system. There is a separate wash up and prep area and commercial dishwasher, ample servery areas and storage including a large walk-in chiller and dry store.
Throughout the building there is good storage for linen and cleaning materials and hoovers etc. The building also provides toilets for guests and staff alike.
The grounds cover around 1.6 acres and are laid to car parking, grass and shrubs. There are two entrances from the main road in front of the property, one to the east which provides access to a large hardcore covered car park, the second one is to the west and provides access to further car parking and is also the main delivery entrance to the hotel. Between the two accesses there is a grassed area with 14 picnic tables. This area is directly accessed from the conservatory.
The sea side of the hotel is mainly laid to grass with a paved terrace area close to the sea side entrance to the building. This area also has picnic tables offering an alternative seating area.
The biomass boiler for the hotel and adjacent buildings is located within a separately owned hotel building to the west of the hotel. There is also a garden shed and an external laundry and secure store building.
The property benefits from mains electricity, biomass heating and hot water, mains water and drainage. The biomass-fired central heating is owned and maintained by an independent company. The fuel is also supplied by this company at a rate of 95% of the RHI payment (5.825 pence / kWh). The hotel complies with environmental health requirements, has an integral hard-wired fire alarm system and is Wi-Fi enabled throughout.
LEASE HEADS OF TERMS
Capital / Ingoing Premium: £60,000
Rent: Year 1 -2 £45,000
Year 3 - 5 £50,000
Year 6 -10 £55,000
Rent Payments: Quarterly in advance
Lease Duration: 10 Years
Rent Reviews: Every Three years in line with RPI.
Lease Type: Full Repairing and Insuring; lessee bears the cost of Insurance. Landlord takes out insurance and tenant reimburse as additional cost to rent.
Stock: Valued at cost and to be paid in full within 7 days.
Fixtures and fittings Inventory: To be compiled and agreed in advance.
Condition: Condition survey of building and all fixtures and fittings to be carried out (by mutual agreement and costs shared).
Entry Date: As mutually agreed.
Full Lease to be presented within 30 Days of Draft offer
Offers Over £695,000 are invited for the freehold interest complete with goodwill and trade contents (according to inventory). Stock at Valuation. There is also a lease to buy option for the hotel. Further details available from the selling agents.