Property Alliance Group Affiliate Confirmed as New Buyer for Seiont Manor Hotel, Wales

Main Photo: The Seiont Manor hotel, as it today

Date: May 2021

Location: Llanrug, near Caenarfon – Carnarvon, North Wales, UK

Name: Seiont Manor

No. of Keys: 28, with plans to add 33 new rooms, to take it to 61 plus 39 lodges

Seller: The business was owned by Paul & Rowena Williams, who sadly had to put the hotel into administration in January 2020

Buyer: Seiont Manor hotel is to be given a new lease of life after a new owner acquired the business out of receivership. The hotel in Llanrug, near Caernarfon, has been closed since January 2020.

It’s now been acquired by Caernarfon Properties Ltd with David Savage, a developer from Manchester, listed as director, whose main business is Alliance Group, owners of a few other hotels.

The limited company has Dragon Investments, also run by Mr Savage, listed as the controlling party. This firm also now owns Polvellan house in Cornwall.

Plans have now been lodged to expand the Seiont Manor and build 39 lodges in the grounds, adding 33 new bedrooms to take the total to 61. An extension would also be given to the bar, restaurant and spa.

Cadnant Planning, heading up the proposals, said that the hotel is “unsustainable in its current form” and was previously a loss-making operation. They said: “A business plan has been set out by the new investors, initially appraising the viability of the hotel without the additional accommodation. Minimum one-off costs of just under £500,000 of investment would be required to re-open the hotel.

However, the business plan indicates that the hotel would not be profitable based on the accommodation and facilities available. Annual losses, based on 75% room occupancy would amount to over £650,000.”

“Financial models based on provision of additional accommodation and an upgrade of current facilities indicate that with an initial investment of over £800,000 the enterprise as a whole, including phase one of additional accommodation provided through the lodges, would be loss making in year one of trading but would be profitable by year two. This would then allow further investment in the hotel expansion, with the development completed within 2-4 years.”

Paul and Rowena Williams previously ran the hotel in partnership with Mylo Capital Limited after taking over the business in 2016, from Hand Picked Hotels. It then went on the market in February last year in the hands of administrators Duff & Phelps.

The new owners also want to build a reception, ancillary grocery store and activity centre, with an 11-bedroom staff accommodation block. Separate proposals are also expected for neighbouring Llwyn y Brain manor house, a Grade-II building fallen into disrepair.

THPT Comment: We know the Williams well, and feel sad that they put all they had into nearby Plas Glynllifon, as a stately 100 room pile, that they so nearly restored to a grand 60 room hotel….but time and costs were not on their side. That property is still for sale, for which THPT have details.

First Seen: Boutique Hotelier

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