Impressive 100-room Victorian hotel located in a 55,000 m2 estate in Northampton is up for sale. The hotel was built in 1850 and offers all amenities, including 25 meeting rooms, a swimming pool, a restaurant, a Jacuzzi, and two tennis courts. The initial gross yield of the building is at 13%, yet if the new owner undertakes the partial renovation recommended by the hotel management company which includes the addition of rooms, profit is expected to increase by 28% within 7 years.

SWAT Analysis

  • Strengths
    • Nice country location with a country house style property with meeting space
    • Few good attractions locally to the hotel resulting in a healthy volume of business
    • The hotel has some good, strong local accounts and enough volume to allow some movements within the ADR
  • Weaknesses
    • Location can be seen as a weakness as-is out of city center
    • The contrast in the style of the property from the entrance to the public areas which is not balanced to carry the impressive quality on entering the building
  • Opportunities
    • Grow occupancy at the same level as its competitors set
    • The yield management system will be implemented
    • Increase the wedding market
    • Introduce leisure groups as the region is strong in this market
    • Target new business moving into the new business park on the north of Northampton
  • Threats
    • None we are aware of