Habrough Hotel
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Pent Up Demand for Domestic Weddings
- There has been pent up demand for weddings
- Domestic weddings are being favoured over international weddings
- An opportunity exists to participate in a structured investment
- Investing equity in a refurbishment project of a boutique hotel
- All investors benefit from the named charge held by Accumulate Nominees on behalf of investors. The acquisition investors invested, first, so their redemptions will be due first and as such have priority over the refurbishment investors by virtue of the date invested with all investors equally benefitting by the charge held.
- The refurbishment is due for completion in August-21 with soft opening of the hotel projected for Sept-21.
- The exit achieved by way of revaluation within 18 months based on the operating income achieved.
- The opportunity is to joint venture with the developer to refurbish an existing hotel.
Key Figures
Hands Free
Long Term Leases
Higher Yields
About Habrough Hotel
Habrough Hotel was purchased in December 2020 and work has already commenced to modernise the interior and transform the building into a 32-bedroom boutique hotel and spa.
The hotel is ideally located in rural North East Lincolnshire, close to transport networks and major industry. This means that it is well-placed to cater for guests who are in the area for business or leisure.
The refurbishment has been planned for over 2-10 years and there is an option to also utilise the adjoining golf course, providing an extra revenue stream for the hotel.
This is an opportunity for investors to joint venture with the developer and achieve up to 14% annualised returns.
Brexit and the Coronavirus pandemic has encouraged British holidaymakers to choose destinations closer to home. The additional cost of quarantining combined with the drop in the pound has made it more inconvenient to holiday abroad.
In 2015 before Brexit British holidaymakers enjoyed 42 million foreign vacations but escaping the country’s grey clouds and lacklustre summer temperatures to sizzle on a beach in Spain was not always the tradition it is now. Going back to the post-war era and many holidaymakers stayed within the island’s borders and enjoyed the pebbled beaches in Brighton and the bright lights of Blackpool. Those flush with money would consider Devon or somewhere in the south west where there are sandy beaches and the promise of a warmer climate.
The lure of the weak pound to overseas holidaymakers
It is not just British who are finding the UK an increasingly attractive holiday option, in 2017 a record 40m international tourists visited the United Kingdom. Overseas travelers are flocking to the island as they can now get better value for money due to the drop in the value of the pound compared to other currencies.
Both international and domestic tourists need accommodation when they go away. Now could be an ideal time to invest in hotel rooms for those with capital that is generating minimal interest sitting in the bank.
Why choose a hotel room investment?
With the uncertainty surrounding Brexit, the pound has dipped in value compared to other currencies. This has meant that more people are taking domestic holidays, and it is now more affordable for people overseas to holiday in the UK. This ensures that there is a strong demand for hotel rooms, and thus investors can expect to achieve a good income. The demand will be sustained as it is uncertain whether it will be as easy or inexpensive for UK nationals to holiday abroad once Brexit has been fully implemented.
The rise in domestic holidays and celebrations provides an opportunity to investors. Individuals can either take advantage of the rise in staycations by investing in hotel rooms, or joint venturing with developers in the refurbishment of existing hotels, enjoying the following income streams.
Contact us today to learn more about these types of hotel room investments and joint ventures and discover how a sustained demand for UK holiday property will translate into high yields.
The independent RICS valuation of the hotel, against which a first charge has already been registered at H.M. Land Registry on behalf of investors, is £2.6m.
This determines the value against which we are raising funds. As you can see we have contributed £200,000 of our own funds which added to the £950,000 of equity totals a 44.2% investor protection buffer of £1,150,000.
Having completed acquisition at significantly below the market value and commenced the refurbishment works we are now inviting you to invest alongside us in the refurbishment finance.
This is a highly advantageous and limited opportunity to become involved in an advanced project and your opportunity to achieve market-leading returns of up to 25.5% over an 18-month term with the security of the legal charge already registered.
- Hotel Purchase Completed - 23rd December 2020
- Investor Security - Charge registered at H.M. Land Registry
- Investor Protection Buffer - 44.2% - £1.15m
- Low Total Investor Loan to Value Raise - 55.8%
- Demand-Driven Acquisition
- High Growth Area
Equity / Profit Forecast
The intention is to develop the hotel over the next 2 - 10 years as a significant asset within our portfolio, therefore we have ensured a low total loan to value raise from investors of just £1.45m equating to 55.8% of the £2.6m GDV allowing us to comfortably refinance and exit investors with repayment of their principal and accrued interest at the end of their term forecasted at £1.75m (67.3% refinance LTV).
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