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Excellent 9-bedroom Hotel In Orkney For Sale

Dounby, Orkney Islands, UK
Asking Price:
Available on request
Net Profit:
Available on request

• Popular and busy licenced hotel, enjoying great support from locals and tourists alike, in the heart of popular village of Dounby, only 15 minutes from Kirkwall.

• Substantial building built in 1897, recently refurbished providing a modern and attractive business opportunity with generous parking to the rear.

• Trading very successfully year round, generating a strong turnover (c£420k and GP c£282k) and excellent profitability providing an exceptional “Home and Income” opportunity.

• Sale comprises, 9 letting bedrooms, 90 cover restaurant, modern conservatory café, attractive well stocked bar and one double staff bedroom.

• Prominent trading location within easy reach of a wide range of services and facilities and ideally located to explore the Neolithic side of Orkney as well as other major attractions.

Property Information



Living Accommodation:

The owner’s accommodation is located within the “house” part of the hotel and includes a large double en-suite bedroom with dressing area. This area was previously an owner’s house and although recently converted to offer four additional letting rooms and an office, it could be re-configured to suit a larger family. There is also a double garage (55m2) presently used as a store that may be suitable for conversion to owners accommodation subject to consents.


Dounby is an attractive village on Mainland Orkney located to the north of Loch Harray, 14 miles north-west of Kirkwall. It is connected with good road networks and the hotel is ideally located on the junction of the A986 and B9057. Lying close to the pre-historic village of Skarra Brae, Dounby is the ideal location from which to explore Orkney and within 10 minutes’ drive are, Maeshowe, Ring of Brodgar, Standing Stones of Stennes, Brough of Gurness and Brough of Birsay. There are also the Farm museums, Kiribister and Corrigall. For the Sportsman, Trout fishing is available on Loch Harray and Loch Swannay as well as others close by and boat hire can be arranged at the hotel. Walking and cycling are very popular and there are many coastline walks from Yesnaby where the rare Primula Scotica and rock formation can be found.

The hotel is pleased to offer drying and bike storage facilities. RSPB reserves are located at The Loons, Marwick Head and Birsay. There are many other sports activities and archaeological sites all within easy reach of the Smithfield Hotel. Orkney is renowned for its arts and crafts and the craft trail offers an abundance of places to visit. In the village of Dounby itself, although so close to the main town of Kirkwall, it still offers, Pharmacy and GP surgery, Butcher, Hairdresser, Jewellers, Craft Shop, Post Office, school etc. Kirkwall Airport is only 30 minutes’ drive away.

Premises Details:

The Smithfield Hotel is a traditional hotel, dating from the late-1800s, benefitting from a strong trading location within the village of Dounby, which is one of the largest villages in Orkney. This Scottish Tourist Board 3-star hotel is a fine example of a successful business which has been under the ownership of one family for a number of years. The owners of the hotel enjoy a good relationship with the local clientele, sponsoring a darts team, pool team, and offering live music as well as poker league nights in the bar thus generating a strong local trade year-round. There are many visitors to the Island of Orkney who also frequent the business and the demand for accommodation and food, particularly in the main summer season, sees an enviably high occupancy level throughout and often extending well into the shoulder months.

The vendors have refurbished this property throughout now bringing it to the market as a walk-in proposition. Internally the property has a modern restaurant and bar to seat 90 covers, the hotel prides itself on serving local freshly prepared food, and catering to dietary requirements such as a gluten free menu. The restaurant is open in the evenings only. Daytime fayre can be obtained from the café open 11am-3pm and offering a full menu as well as a coffee shop. Breakfasts for residents are also served in the café.

Accommodation income is derived from 9 bedrooms, 8 of which are en-suite, and one single bedroom with private bathroom. Each recently refurbished room at Smithfield Hotel features free Wi-Fi, tea/coffee making facilities, and a TV. There is one family room, three doubles, four twins and a single. All the rooms are modern and fresh.

The Smithfield Hotel operates year-round presenting a sustainable business opportunity for new owners to build upon current trade. The business has a consistently rising turnover each year generating in 2018 turnover of approx. £420,000 and gross profit in the region of £282,000. The property has a welcoming reception area. The majority of income is derived from the restaurant and café with food provision being of a high standard. The hotel offers a wide range of dining options, the restaurant is a must for a more intimate dining experience and has a desirable ambience with attractive lighting. This bright and spacious area proves particularly popular with passing trade. The café is housed in the conservatory to the front of the building and this has become a busy area of the business. Restaurant trade and wet sales are supported by visitors staying on-site plus those from the many holiday homes and B&B’s in the vicinity. Passing trade accounts for a significant footfall but such is the demand in the main season means it is advisable to book to secure a reservation. The business also benefits from trade through the regular cruise liners; The Orkney Islands are the UK's most popular cruise ship destination. The Smithfield Hotel is the only licenced premises in the village.

In addition to excellent catering options, the hotel enjoys significant income from accommodation bookings driven by nine most comfortable en-suite letting bedrooms, 8 of which benefit from modern en-suite facilities, and one from a private shower room. As it presently stands, the hotel has achieved a successful and sympathetic combination of traditional character with excellent modern day comforts which appeal to many discerning clientele.

The hotel benefits from a great number of repeat visitors plus a high level of occupancy throughout each trading year. This successful business would ideally suit experienced or highly motivated operators who could bring their imagination, flair and energy to drive the business forward.

The business has a highly effective website plus it makes excellent use of a number of portal websites to provide wide market exposure. The hotel has a strong reputation which is reflected in TripAdvisor.

The Smithfield Hotel is a substantial property of traditional stone construction under a pitched slate roof. A Victorian property, the hotel has accommodation arranged over 2 levels. A new fire system has been installed and there is an electrical certificate held.

The hotel has four access points, all at street level; one leading directly into the reception, another taking guests into a rear bar area, and a third entering into the back restaurant. The fourth entrance, via the courtyard, is assigned for staff use only. The building has an attractive façade. The main door leads into a vestibule which enters into a reception hall. This area is generous, presented in excellent order featuring attractive slate. There is an office near the main entrance.

The café is located to the front of the property in a splendid conservatory and there is a small private dining room located here which allows for private functions or an overflow from the café during busy periods. Also on the ground floor is the large dining room with capacity for 90 covers offering both formal and informal dining options, newly refurbished ladies and gents facilities are located close by. There is a comfortable guest lounge where residents can relax after a day’s activities on the Island.

The commercial kitchen, is located for ease of service and is fully fitted out. There is a dry store, dishwashing area and sweet prep area. The bar is set to the centre of the property and is a welcoming area with pool table, darts board and sports TV on offer. There is also an attractive outside seating area.

The hotel benefits from nine highly attractive letting bedrooms which are configured as follows; four twins, three doubles, one family and a single. All rooms are tidy and modern with splendid fixtures and fittings, 8 benefit from quality en-suites with the remaining single room utilising private facilities.

There is a full team of staff who support the owners. At the current time there are 15 staff employed, most on a part time and seasonal basis. There are two full time chefs/cooks, as well as housekeepers, bar and waiting staff.

A small courtyard is set to the centre of the property. There is ample on-street car parking and parking to the rear of the hotel where there is also a storage area for bins. There is bench seating on a small garden area to the side as well as on a garden patio to the front of the subjects.

The Smithfield Hotel benefits from mains electricity, water supply and drainage. Oil-fired central heating provides hot water and heating. There are also some electric panel heaters. Cooking utilises LPG gas. The main property is fully double glazed. There is a new fire alarm system, and the hotel is fire compliant and meets EHO requirements. There is Wi-Fi throughout most of the hotel, excluding the dining room where 4G signal is available.

Business Operation

Reasons for selling:

The present owners purchased the hotel in 2011. They have improved the quality of the trading aspects and now wish to concentrate on other business ventures thus offering scope for enthusiastic new proprietors to further develop the operating aspects beyond its current level.

Other Information

Related Documents:

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