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Hilton Smythe is delighted to welcome to the market this well-established and popular hotel, bar and restaurant business, set within an ideal trading location in Darlington, County Durham. The business was established in 1995 and has been in our client’s careful ownership since 2018.
Only now is the business being offered to the market due to our client’s ill health. Originally a 5-year plan was in place but has been cut short due to the ill health. The plan involved a significant up-front capital investment, renewal of poor services and dated / dangerous electrics and plumbing. The entire hotel interior has been professionally decorated and many assets / fixtures and fittings have been renewed.
Our clients believed the airport would change ownership (which has just happened) and that would provide opportunities. They also believed that the only other hotel on the site would close, providing yet more potential to increase business. Both of these things have happened and the trading situation is now highly favourable.
Our clients have also invested in a new web site, a social media plan and a sales/marketing strategy that will be on-going for the new owner. This is helping generate enquiries as well as repeat bookings so the need for OTAs has been minimised, meaning much lower commission rates that is usual.
The business operates all year round and generates a turnover in the region of £285,000 per annum, with a good gross profit. The business offers 19 freshly-decorated single, double/twin and family en-suite bedrooms, each with a bath and shower, colour TV, hair dryer and tea/coffee making facilities.
A massive £80,000 has recently been spent on renovations and redecoration, with staff on hand 24 hours a day.
The restaurants offer a wide variety of menus, including their famous 4 meat carvery on a Sunday. The restaurant is open lunchtime and evening, 7 days per week. The business has built up an enviable reputation. For a budget venue the quality of the rooms and services offered is very high; online reviews attest to this. Perhaps as a result, the hotel has developed a very loyal client base with a high volume of repeat trade and word of mouth referrals.
We feel there is scope to increase the turnover by offering outside catering, as well as embarking on a marketing campaign to highlight the business and the services offered. The business already has an excellent website in place to promote the business, which is very informative and user friendly, as well as offering online booking facilities at ---.---------------.---
This is an excellent opportunity for a new owner to take this already thriving and popular business to the next level; therefore, early viewing must come highly recommended to avoid disappointment.
Sunday Carvery numbers were brought up from 60-85 per week to 150 – 225 per week
Room occupancy was taken from 35% average to 57% with 80% plus peaks. The hotel has been 100% occupied on numerous occasions.
Direct booking promotions in place.
Durham Tees has a loyal band of regulars that is slowly growing. In Summer the outside space is well-used
Air training schools
Fire training school
Motorcycle training school
The Priory promote us to staff and some visitors
New web site
Online review curation and improvements
Durham Tees Hotel occupies substantial two storey premises, ideally located just 500 yards from Durham Tees Valley International Airport within Middleton St George, Darlington, County Durham. The property benefits from exceptional views of the airport, runways and the flying club, as well as a large car park for approximately 50 vehicles.
Darlington is a market town in the North East of England and as of the 2011 census, the town had a residential population of 106,000. The town lies on the small River Skerne, a tributary of the River Tees. The hotel is just a few minutes’ drive from the Teesside Retail and Leisure Complex, which boasts a multi-screen cinema, bars, nightclubs and eateries.
The area of the business is well served by the railway system, with the Teesside Airport railway station being just 10 minutes’ walk away from the property. The area is also well served by A-roads, with the A-67 being just a two-minute drive away, which links to the national A-road and motorway networks. Darlington town centre is approximately 6 miles away and Middlesbrough is 11 miles away.
Plumbing – much of the old leaking pipework has been replaced as have many pumps. The showers all work and some drainage has also been updated.
Heating – 18 months ago the building had a few water filled central heating radiators but most of the heating came from old fashioned, bulky and inefficient (expensive) block heaters. Every one of these heaters has been replaced by energy efficient flat panel heaters.
Electrics - Some electrical work has been undertaken with particular attention to lighting and areas where the old system was unsafe.
Decoration – Every room and all the public areas have been pained, some plastered too. There are rooms with new carpets as well as public areas with new carpet too. The restaurant / function room was decorated about a year ago and the hard wood floor sanded and professionally re-stained / varnished.
Furniture – all the furniture in the restaurant / function room was new about a year ago and there are many new beds, mattresses and other pieces of furniture all over the hotel.
The exterior of the building was next on the list but that has been halted as the owners are now selling. They have however completed the following; Re gravelled the car park, new drain covers, re-laying of areas of monoblock paving, cleaning of all monobloc paving.
Two storey detached premises, briefly comprising:
Reception area. Bar area with access to all rooms. Ladies, gents and disabled WCs. Dining/function room with approximately 150 covers, small bar area and carvery unit. Fully equipped commercial kitchen. 2 x internal boiler rooms. Utility room.
£80,000 spent in this past 12 months doing the whole hotel up including new kitchen.
We are advised the business is being sold as a Leasehold.
Original lease length: 8 years, remaining lease length: 7 years as of 2019.
Rent: £60,000 per annum.
Open 24 hours a day with full time staff.
The business is run by staff and over viewed by our clients. Our clients view it as, “Deliberately over staffed”. That was part of the 5 year plan. To invest up-front, over-staff to ensure excellent service, the owners to then move in, take over many of the positions and put the business on the market.
1 x Chef, 1 x Manager, 1 x Guest Services Assistant, 2x part-time Housekeepers, several part time weekend staff.
Durham Tees Hotel generated an advised turnover of circa £280,000 with a net high potential net profit.
£80,000 spent in this past 12 months renovating and decorating the whole hotel. An additional investment was focussed on the kitchen bringing it from 3 to 5 stars.
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