UK Staycation Investment properties are set to experience a boom as soon as lockdown restrictions are eased. There was already great anticipation building up throughout the last year for the amount of interest that UK holiday destinations would see once leisure travel was allowed to recommence. These expectations now seem set to be exceeded following the government’s guidelines around not being able to take trips abroad this coming summer. Paymán Investments’ risk in the portion of its portfolio dedicated to tourist markets seems set to pay off. Our overall risk-management strategy with contractor-market based hotels has yielded excellent results over the last few months, and a great boost is expected to be added to our bottom line through today’s purchase.
UK Staycation Hotel and Cottages Purchased
Paymán Investments’ latest purchase to complete is that of an idyllic hotel and three cottages set just outside the cosy village of Alston in the North Pennines, an Area of Outstanding Natural Beauty. Lovelady Shield Country House Hotel and Cottages will continue marketing under a similar name, Lovelady Shield Hotel. The prestigious 15-bedroom hotel forms part of a private estate overlooking the River Nent, with sheep-grazing fields extending around it up to the horizon. Nestled in the midst of nature, it provides the perfect setting for a relaxing holiday as a couple, with a group of friends, or a larger family booking in to one of its wonderful cottages.
About Lovelady Shield Hotel
While the cottages have been preserved in fairly good condition, given the fact that the previous owners were forced to shut the business around 18 months ago due to financial issues, the hotel itself has fallen into a state of major disrepair. Having purchased this property from Receivers, our cash offer proved particularly enticing thanks to the speed of transaction. Despite a number of challenges given the nature of the purchase, our team of outstanding solicitors headed by Kian Golestani were able to achieve completion in less than 3 months from the offer being accepted. This allowed us to secure the estate at half the value of what it could have fetched pre-pandemic. While major works are required to bring it up to scratch, a team of builders have been lined up and are set to deliver the final product prior to the onset of the summer season.
In a stroke of luck, last Friday, on which we had originally anticipated to complete the purchase on, a major leak was reported in one of the cottages. As a result, we were able to re-negotiate the purchase price down by a further £50’000 at the last minute, while remedial works are expected to cost significantly less. The value ultimately delivered to our shareholders will therefore end up being even more attractive than originally anticipated.
Surging UK Staycation Investment Driven by Demand
While the past year has been a tough one for the hospitality industry as a whole, there seems to be some light at the end of the tunnel. Since we started buying and refurbishing hotels last October to run through our sister company, Paymán Club, we have been achieved and maintained impressive levels of occupancy, with the average in March nearing 90% across the 4 hotels that have started trading. The guests staying have come from a very limited section of the market, given that leisure stays have been banned over the last few months.
Na’ím Anís Paymán, CEO of Paymán Investments, said: “I am over the moon at having completed on this purchase. Not only has this been an extremely good deal financially, but the property and location are simply so attractive that I fell in love with it at first sight. While I never buy based off feelings, I must admit that in the background I really hoped we could pull this one through, and am glad to see that the deal seems to be set to pay off from all perspectives!”
Earlier this month, the UK government announced a £5’000 fine for anyone caught trying to leave the UK for a holiday. This unexepected restriction means that the entire population of the UK, which usually is a great exporter of summer tourism to warmer climates, will be forced to take their fervently anticipated breaks within its own borders. As such, demand is expected to shoot through the roof, especially in countryside and seaside locations such as the newly acquired Lovelady Shield Hotel, and our other hotels in Torquay, Skegness, Castle Douglas and Knighton. UK Staycation Investment properties are set to benefit.
Two of the three holiday cottages will be available for bookings immediately while remedial works are carried out for the rest of the estate. To book a stay at Lovelady Shield Hotel, click here or call 0333 4444 324.