Hotels and Motels for sale in Stromness

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Outstanding 42-Bedroom Hotel set in Orkney, with Seaward Views

Stromness, Orkney Islands, Scotland

  • Freehold Price: £550,000
Seller Reference: Stromness Hotel
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Business Description
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Seller Reference: Stromness Hotel
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Business Description

  • Historic Highland hotel dating from 1901 in a stunning coastal setting on the ever-popular tourist destination of Orkney.

  • Landmark hotel overlooking the picturesque harbour with Scapa Flow beyond.

  • Prominent and popular trading location offering 42 well-appointed en-suite bedrooms with attractive public areas.

  • Operating on a seasonal basis, trading profitably providing a significant investment opportunity either for an independent operator or an experienced hospitality group.

  • Includes staff accommodation plus garden grounds with car parking to the rear aspects.

The Stromness Hotel is a stunning and imposing building set in the heart of Stromness with breath-taking views overlooking the harbour. Located within a leisurely walk of the ferry terminal, this charming hotel was developed in the early 1900s. The business has a strong presence and is a popular destination location for many visitors during the main season (Easter to October). The business boasts many exceptional features and has greatly benefitted from considerable inward investment over the past few years to include a new fire alarm system, newly appointed en-suites and improvements to general décor. The quality of fixtures and fittings within the rooms has also been a feature in bringing this iconic hotel into the modern era. The business is very well-presented and is in walk-in condition. The property boasts 42 letting bedrooms which is ideal to cater to the many coach operators and large groups visiting the Island. The function suite can accommodate around 120 people seated. The hotel has two bars which are defined by their own character. The Hamnavoe Lounge Bar is located on the first floor, enjoying views across the harbour and Scapa Flow and is where food is served to the many guests staying at the hotel. On the ground floor is the iconic Flattie Bar; a popular haunt with both locals and tourists alike due to its authentic atmosphere. The hotel has ample service areas to support the operation of this significant trading entity.

This is a high-performing business generating an impressive level of turnover and producing a strong adjusted net profit. The hotel currently trades on a seasonal basis from Easter to October but has in the past traded year-round. The current owner manages the business at arm's length leaving trusted staff to supervise the daily operation. Any new owner who played an active role in the business operation would surely help develop the business to the next level. Income streams are split between the 42 letting bedrooms and the wet / food sales. The business has a sound reputation, enjoying a good level of repeat business, thus ensuring a consistently high occupancy level. Operating a popular range of fayre, catering to both tourists and the local community, the hotel is the venue for a number of festivals held in the town throughout the year. The owner takes great pride, with the assistance of the General Manager, in ensuring that guests receive a particularly warm and friendly welcome, maintaining the trading elements to a very high standard. Tourism is a key driver and the hotel benefits from many tour groups who visit the island from across the world. In addition, independent travellers include those who undertake water sports (kayaking and diving), fishing, walking holidays or partake in a more sedate excursion of the Highlands and Islands taking in the many scenic sites and historical features. Other visitors include ornithologists and naturalists who find an abundance of wildlife to keep them busy for an extended stay. The location of the business is such that it is easy to find for those who booked via the internet and the casual passer-by seeking accommodation / refreshment. The business is well-signposted and is supported by a modern website ( which utilises an on-line booking platform. The hotel is marketed through a number of portal websites and has a solid presence on the internet and through social media sources.

The hotel is operated on a daily basis with a professional team of managers. There is a General Manager and a Head Chef plus a crew of up to 30 staff during the main season. Seasonal staff are recruited locally and through web-based recruitment sites.

The vendor purchased The Stromness Hotel in 1996 and has improved the infrastructure and operational aspects of this iconic hotel. Due to family reasons and a desire to retire from the hospitality sector, it has been decided to present this excellent trading entity to the market.

The Stromness Hotel is found in the West of the beautiful Orkney Islands which is home to around 19,000 people. It is situated within the town of Stromness which is a main sea port for people crossing from the mainland. Stromness is a popular tourist stop-off point and is only 15 miles distant from Kirkwall, the Islands capital and major administrative and communications centre. The airport is also situated at Kirkwall. The welcoming community of the Orkneys is supported by well-established infrastructure and social facilities locally. There are excellent sports facilities and leisure facilities. The standard of education in Orkney is also extremely high. Orkney has a strong history encompassing pre-history, Pictish and Viking heritage which is reflected in the many places of interest to visit. The Islanders enjoy an enviable quality of life, amidst stunning and varied scenery, all bounded by the ever-changing sea. Besides abundant wildlife, Orkney holds possibly the greatest concentration of archaeology in NW Europe, including the unique Neolithic village of Scara Brae, and the group of sites clustered around the Ring of Brodgar, and known as Orkney's Neolithic Heartland, which was granted World Heritage status by UNESCO in 1999. Visitors can also enjoy the vibrant contemporary culture and a wide range of activities including excellent fishing, bird watching, golf, walking, climbing and sailing, though many enjoy the peaceful ambience of the islands. There is a strong legacy of history on the Islands, as it was a major naval base during both the First and Second World Wars

The Stromness Hotel is a 4-storey detached property boasting 42 letting bedrooms with additional staff accommodation in the attic. Of stone construction under slate roof, the original subjects date from around 1901. A most attractive feature of the sale is the stunning location of the business with its expansive seaward views over the harbour and Scapa Flow.

Ground Floor
Entry to the hotel can be either directly into the Flattie Bar or the main entrance leading to the spacious reception hallway where a lift or stairs will take guests to the first-floor reception desk. An attractive feature of the entrance hall is the beautiful chandelier and the revolving door, both paying homage to the origins of this prestigious property. With its own off-street access, the Flattie Bar can also be accessed internally. Set to the right-hand side of the reception corridor, this iconic pub has great character and charm with its bespoke designed bar, hardwood floor and solid fuel fire. The authentic furnishings add to its ambience and the 'flattie boat' suspended from the ceiling is a throw-back to the Island's maritime history. To the left-hand side of the reception corridor is a large utility area where the hotel stores much of the paraphernalia required to operate. However, this area has some latent potential for future development. There are ladies and gents' washrooms on the ground floor. To the rear aspects is further storage and the beer cellar.

First Floor
This floor is the beating heart of the hotel and is where the reception desk is located with the manager's office to its rear. The Hamnavoe Lounge Bar is situated to the front of the building offering glorious views across the harbour. Set to free-standing tables and chairs this popular dining venue can comfortably seat around 50 guests. The room has a real fire with a wood-surround mantle presenting a lovely traditional ambience and is popular with tourists and locals alike. Along the corridor is the hotels cocktail bar and further along is the spacious and attractive function room. Being able to accommodate up to 120 seated diners, the function room has its own self-contained bar and large wooden dance floor.

The main support areas are also located on this floor with the large kitchen and ancillary areas being well positioned to effect good service. The kitchen is well-appointed and has a secondary preparation / pot-wash room adjacent to it. The hotels large laundry with commercial units is beyond the kitchen and there are ample storage spaces also at this level. The boiler room and staff facilities are located within the service corridor.

Second and Third Floors
Stairs and the reception level lead to all the letting bedrooms on the second and third floors. All the rooms are all well-presented and many have benefitted from the recent modernisation program and the provision of new furnishings. The hotel's 42 guest rooms are furnished to a high standard and all benefit from en-suite shower/bathroom facilities. In room facilities comprise of television, Wi-Fi, hairdryer and tea/coffee making facilities. A full breakdown of rooms by type is available from the selling agents.

On the attic floor are 5 staff rooms. The current owners do not live on the premises.

The hotel boasts a good level of guest parking to the rear aspects with around 20 parking slots. The external garden area is popular with guests during the summer months.

The subjects benefit from mains electricity, water and drainage. The building is heated by electric heaters with an oil-fired boiler providing hot water. The hotel utilises gas for cooking. Wi-Fi is available in all public areas. The property is fully fire compliant and meets Environmental Health standards. The building benefits from a lift to all guest floors.
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