UNIQUE AND PROFITABLE FREEHOLD HOSTEL IN DEVON
Price:
Freehold - £480,000
Location:
Devon, Hoe, Plymouth
The particular highlights of the business are:
- Ideally located concern offering excellent lifestyle.
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £79,000 with a net profit of £32,000. (See financial summary below).
- A business with great potential which has not been exploited because the current owner is occupied with other business interests.
- An easily run operation.
- Good loyal well trained staff.
- A great freehold investment and business opportunity.
History
Phoenix Business Transfer Agents are delighted to place onto the market this fantastic freehold hotel opportunity which has been established since 2003. The business has been in the hands of the current owner since inception and he now wishes to sell due to other business commitments.
Services
This very good business opportunity provides a hostel for backpackers and travelers from all over the world.
Staffing
The concern employs three staff. One is full time and two are part time. The full time staff member is also a manager. All staff would stay on after a sale.
Owners Role
The owners’ role is limited and he works two days per week at this location.
Marketing
The owner markets the business in the Hostel and Hostel World websites and has his own website.
Competition
As far as competition is concerned this is the only backpackers hostel in Plymouth.
Market
The client base consists of backpackers and world wide travelers.
Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings and local and internet advertising.
• Becoming more efficient with staffing levels and living in on the premises.
• Working more hands on hours and saving on wages.
• With an enhanced website.
Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The Owner would also be happy for an on the job observation period to assess the business prior to offers being made.
Property Details
The property is terraced and is part of a parade of guest houses. It is very well presented and is very conveniently laid out.
The hostel can accommodate 34 customers in flexible dormitories of 4 and 6 guests (male/female dependent on bookings). There are customer toilets, bathrooms and shared kitchen facilities.
First Floor
The building has three floors with a split level half floor and a fourth floor used for staff accommodation which could easily be converted into a spacious three bedroom flat for a live in owner.
External
To the rear is a small courtyard where guests can enjoy eating in the open air.
Equipment with sale
All fixtures and fittings and equipment are included in the sale price and are valued at £10,000.
Financial Details
The present turnover is £80,000 per year with a gross profit of £40,000 and a net profit of £32,000. The present value of the stock is £100.The potential turnover of the business within the next 2 years is forecast to reach £100,000 given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note Phoenix do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Phoenix will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.
- Situated in the Hoe area of Plymouth in Devon.
- Prominent location on main arterial road.
- Excellent parking facilities nearby.
- Surrounded by a well populated residential area with schools and other local amenities.
- Area offers exceptional lifestyle.
- Outstanding tourist trade.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- Commercially thriving area.
- Well linked with the A38, A374 and A386 with excellent railway links.
Monday to Sunday: 3.30pm - 11.00pm
The building has three floors with a split level half floor and a fourth floor used for staff accommodation which could easily be converted into a spacious three bedroom flat for a live in owner.
UK Non-Specific
£ 800,000
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