THE MERCER COLLECTION - BOUTIQUE HOTELS & SELF CATERING COTTAGES - Christie & Co
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THE MERCER COLLECTION BOUTIQUE HOTELS & SELF CATERING COTTAGES
Table of Contents
3 Introduction
4 Location
5 Asset Overview
10 Investment Summary
11 Business Overview
12 Capital Investment
13 General Information
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THE MERCER COLLECTION
BOUTIQUE HOTELS & SELF CATERING COTTAGES
The Mercer Collection is a privately-owned group of seven beautiful
hotels and cottages located across the vibrant and picturesque
locations in Southsea, Hampshire.
• Florence House The collection was established in 2004 by Daniel and Vicki Sutton; a Hampshire couple with a passion
for great British hospitality. Each hotel and cottage has its own distinctive personality and individual
character – full of charm and history.
• Florence Gardens
Interiors are designed to the finest detail by Vicki Sutton and modelled on a quintessential English
• Florence Suite country home – relaxing, friendly and effortlessly stylish. Through a clever blend of contemporary
furniture and striking artwork, each hotel is beautifully presented in-keeping with its history whilst
offering home comforts and modern luxuries. Inspired by the owners dedication to hospitality they pride
• Somerset House themselves on the service provided to all guests with experienced teams at every hotel and cottage who
deliver a personal service to all.
• Clarence
• Stattons
• Number Four
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Location
Notable tourist attractions in the area include the Spinnaker Tower, Mary Rose Museum, also an important port for cross-channel and international ferry services as well as cruises
Portsmouth’s historic dockyard, Southsea Castle, and Southsea pier. and services from Gunwharf Quays to the Isle of Wight.
In terms of transport the city has various bus routes and three main train stations including Major employers include BAE Systems, Babcock International, Airbus Space & Defence,
one at the port, another in the city centre, and the third in a more residential area in Fratton. Bell Microsystems and IBM.
Portsmouth’s local airport is Southampton, located 35 minutes away by car, and the city is
Key
Portsmouth University
Portsmouth Tourist Attractions
City Centre
Train Station
2
1
Mercer
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Asset Overview
A collection of well-appointed boutique hotels and short-let “Cottages” in Southsea
KEY OBSERVATIONS
• The portfolio consists of 7 individual Properties all located within Map Properties Rooms Capacity Other facilities Parking Future use
close proximity of each other in Southsea Florence
1 6 14 8 Hotel
• The Properties previously had 59 letting bedrooms, sold on House Garden Restaurant (50 covers inside, 45 on
either room only or bed and breakfast basis. Florence terrace, 15 in cabin), outdoor pizza oven & grill,
2 6 12 Hotel
Gardens bar, kitchen, reception, meeting /breakfast room
• The three Florence properties are located adjacent to each
Florence (15 covers)
other and house the shared breakfast room /restaurant, hotel 3 8 19 Hotel
Suite
reception and bar, which has been available to guests staying in
any of the properties should they want it Somerset Rooms only - guests use the Florence hotel
4 8 22 Hotel
House facilties
• Back of house is also all located within the Florence cluster of Kitchen, dining room, cinema room, games room,
properties (kitchens, storage, reception) 5 The Clarence 6 14 2 House
living room, hot tub
• Tenure is Freehold Front terrace with outdoor dining area, back terrace
6 Stattons 10 22 with hot tub and bbq area, large kitchen-diner, 10 House
• The hotels were unable to trade for several months in 2020 due cinema room, lounge, 1st floor sitting area,
to COVID-19. The Properties subsequently opened for trade in
Large Kitchen and dining room, bar, lounge, cinema
May 2021 7 Number Four 9 20 room, utility room, outdoor kitchen & BBQ area, hot 6 House
• Strategically positioned within walking distance of a number of tub, sauna.
the key leisure and corporate demand generators within the City Total 53
SOUTHSEA B2154
COMMON
SOUTHSEA
HIGHLAND ROAD B2154
32 7 CEMETERY
1 4
5
6
SOUTHSEA
CANOE LAKE
MODEL VILLAGE
SOUTHSEA
CASTLE
SOUTH PARADE PIER
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Asset Overview – Hotels
FLORENCE HOUSE* FLORENCE GARDENS*
2 Malvern Road, Southsea PO5 2NA 6 Malvern Road, Southsea PO5 2NA
Situated within the cluster of three properties providing six ensuite bedrooms. Situated in the middle of the three ‘Florence’ properties providing six ensuite bedrooms.
SOMERSET HOUSE
FLORENCE SUITE*
10 Florence Road, Southsea PO5 2NE
4 Malvern Road, Southsea PO5 2NA
A detached property situates opposite the above properties providing eight ensuite
The larger of the three properties providing eight ensuite bedrooms.
bedrooms. This property does not have kitchen facilities and guests us ethe dining room
in Florence House for breakfast and evening meals.
* the above three properties all share the commercial kitchen, dining room (40 covers), rear ‘al-fresco’ terrace 45 covers) and rear cabin (15 covers), hotel reception and meeting room. In addition, there are 8 car parking spaces provided for the use of these three properties
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Asset Overview – Hotels (Gallery)
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Asset Overview – Luxury Self Catering Cottages
THE CLARENCE STATTONS
Clarence Road, Southsea PO5 2LQ 6 Florence Road, Southsea PO5 2NE
Detached property providing six ensuite bedrooms with kitchen, dining room, cinema Substantial detached property with10 letting bedrooms, extensive kitchen diner and
room, games room, lounge and external terrace with hot tub cinema room. Externally, front and rear garden terrace, barbeque area with hot tub.
NUMBER FOUR NUMBER FOUR
69 Festing Road, Southsea PO4 0NQ 69 Festing Road, Southsea PO4 0NQ
This property is detached and provides nine ensuite bedrooms with large kitchen and
dining room, bar, living room, cinema room, utility room, outdoor kitchen/living room &
barbeque area, hot tub and sauna
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Asset Overview – Luxury Self Catering Cottages (Gallery)
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Investment Summary
• A beautiful collection of seven stunning
freehold Hotels and Cottages.
• A unique and rare opportunity to purchase the
largest collection of privately owned hotels in
Southsea that have been transformed into the
luxurious jewels they are today.
• Total of 53 stylish ensuite bedrooms set in
seven properties.
• Attracts private leisure and corporate custom
with strong function business.
• Ongoing Capital Expenditure undertaken to all
assets with circa £485k investment since 2019
• Annual net revenue 2018/19 in excess of
£1,93m with EBITDA £1,088m
• Full refurbishment of the Hotels and Cottages
completed in May 2021
• Opportunity to drive additional revenue and
EBITDA with the Garden Restaurant opening
Summer 2021
• Potential for alternative use, subject to gaining
the necessary planning permissions
christie.com | 10Business Overview 2017 - 2020
P&L Summary 2017/18 2018/19 2019/20**
Occupancy 85.00% 81.0% 53%
ADR 108.0 101.0 97.0
RevPAR 93.0 84.0 52.0
Rooms Revenue 93.00% 93.00% 84.00%
F&B Revenue 6.00% 6.00% 16.00%
Other Revenue 1.00% 1.00% 0.00%
TOTAL REVENUE 2,156,487 1,993,869 1,339,387
EBITDA 963,788 1,088,994 686,198
* The financial year runs from July to June
** The financial year 2019/2020 reflects the impact of the first Covid lockdown
• The adjacent P&Ls are presented on a financial year basis
which runs July to June each year
• Historically, the business has been rooms driven, with
over 90% of the revenue from accommodation, and the
remainder from breakfast and a small amount of meeting
room rental.
• Total Payroll, (incl. management, cleaning, reception,
security, kitchen and F&B service ) amounted to £570k in
2017-18 (26% or Total Revenue) and reduced to just under
£400k in 2018-19 (20.5% of Total Revenue).
• The business has historically run with a high EBITDA margin
of above 50%
christie.com | 11Recent Capital Investment
Capex 2019 - 2021 (£000's)
Hotel Year Cost (£) Comments
All rooms, bathrooms and public areas are refurbished to a high
standard, Florence Hotels 2021 90 Roof, bedrooms & bathrooms, restaurant and bar areas
The adjacent schedule shows the recent capital expenditure that Garden restaurant 2021 15 Outdoor pizza oven & grill, chalet conversion, lighting, paving,
has been undertaken across the Portfolio. This is based on estimates outdoor seating
provided by the Vendor and represents a cost of approx. £9k per key.
Somerset House 2021 55 Bedrooms, bathrooms and exterior painting
We understand the previous refurbishment was in 2014 and given
the forced closure of the hotels due to Covid-19, the opportunity has The Clarence 2020 85 Bedrooms, bathrooms, kitchen, public areas, games room,
been seized to carry out further investment prior to reopening in cinema room and outside area
May 2021.
The outdoor area of the Florence Garden Hotel has been transformed Stattons 2020-21 130 Internal refurbishment throughout in 2020, and car park, log
cabin, bbq area and hot tub areas in 2021
to provide additional seating areas with an outdoor pizza oven and
grill. This will provide an additional source of revenue for the hotel Number Four 2019 110 Bathrooms, Kitchen, Sauna, Outside cabin /kitchen
serving both hotel guests and locals.
Total Investment 485
christie.com | 12General Information
TENURE VIEWINGS BUSINESS RATES
All seven Hotels and Cottages are freehold. Strictly by prior appointment with the selling agents. Florence House Rateable Value - April 2017 £7,000
PRICE Florence Gardens Rateable Value - April 2017 £8,000
LICENCES Offers in excess of £10,500,000 are sought for the freehold Florence Suite Rateable Value - May 2020 £8,500
We are advised all seven businesses operate with the portfolio or alternatively, consideration would be given to Somerset House Rateable Value - April 2019 £10,000
necessary licences. inviting offers for the sale of the hotels and self catering Clarence Rateable Value - April 2017 £11,500
cottages as separate lots, subject to negotiation.
Stattons Rateable Value - April 2020 £9,600
DATA ROOM Number 4 Rateable Value - April 2020 £11,750
The sale will be a Transfer of a Going Concern (TOGC) on an
The data room holds relevant business and property asset basis.
information to enable a prospective purchaser to establish SERVICES
whether they wish to submit an offer for the property.
Mains electric, water, gas and drainage are connected.
In order to gain access to the data room prospective EPC
purchasers shall be required to agree to the terms of a Florence House – D77
Confidentiality Agreement. Please click on the following STAFF
Florence Gardens – C59
link to access the data room and accept the terms of the
Florence Suite – C64 A full staff list is provided in the data room.
Confidentiality Agreement:
https://projectfestival-christie.com Somerset House – C61 The purchaser will be required to comply with the
relevant legislation in respect of present employees.
Clarence – C73
Stattons – C68
Number 4 – B46
CONTACT T: +44 1962 833805
Ed Bellfield M: +44 7713061171
Regional Director – South Hospitality E: ed.bellfield@christie.com
CONDITIONS OF THESE PARTICULARS
These sales particulars are prepared as a general guide to the property (which expression includes business and trade content, if any, included in the sale) for the convenience of a prospective purchaser or tenant (an “acquirer”) and are intended for business people familiar with commercial
transactions. If you are not sure that you fit this description you should take relevant independent advice before proceeding further. Christie & Co for themselves and for the vendors, owners or landlords of the property (together the “Client”) whose agents Christie & Co are, give notice that: (a)
These particulars are made without responsibility on the part of Christie & Co or the Client; they do not obviate the need to make appropriate searches, enquiries and inspections, nor do they constitute any part of an offer or contract, and statements herein are not to be relied upon as statements
or representations of fact; any acquirer must satisfy himself, by inspection or otherwise, as to their correctness and any error, omission or mis-description therein shall not affect or annul the sale or be grounds for rescission or compensation; (b) The Client does not make or give, and neither Christie
& Co, nor any of their employees has any authority to make or give, any representation or warranty whatsoever in relation to the property; (c) Christie & Co have not carried out a detailed survey, nor tested the services, appliances and specific fittings; (d) Dimensions (where given) are approximate
and should be verified by an acquirer; and (e) Any accounts or financial statements or registration information provided to an acquirer are provided on behalf of the Client by Christie & Co, who cannot therefore offer any guarantee of their completeness or accuracy, and accordingly shall not be
liable for any loss, damage, cost, expenses or other claims for compensation arising from inaccuracies or omissions therein. These details were believed to be correct at the date of publication but their accuracy is not guaranteed. Subject to contract. Copyright reserved Christie & Co. June 2021
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 came into force on 26 June 2017. This now requires us to conduct due diligence on property purchasers. Once an offer has been accepted, the prospective purchaser(s) will need to
provide, as a minimum, proof of identity and residence.
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