Hotel With Beer Garden , Auld Cross Keys Inn, Main Street, Denholm, Hawick, TD9 8NU

The subjects comprise a traditionally built hotel providing 12 letting bedrooms with bar, restaurant and function space.  The property is constructed of stone beneath a pitched slate roof and is arranged over ground, first and attic. 

The property has been extended to the rear with a flat felt roof containing the restaurant, kitchen and function suite, plus a further building over ground and first with harled exterior which inter-connects to the main building.  

Externally, there is a south-facing patio area and beer garden which is a real sun trap in the summer months.

Location

Denholm is a particularly charming and popular village nestled in the valley of the River Teviot approximately 6 miles west of Hawick and 7 miles east of Jedburgh. Scotland’s capital city, Edinburgh, is around 50 miles north-west accessible within an hour’s drive via the nearby A68 – a principal road connecting Scotland with the north of England.

The Auld Cross Keys Inn commands a central position on Denholm’s Main Street overlooking the historic village green, around which Denholm was laid out in the 17th century.  There are splendid views of the foothills of Ruberslaw from the rear of the property.

There is a selection of independent shops, cafés and restaurants in the village with a larger array of amenities available in Hawick.

Accommodation

• 12 letting rooms comprising a mixture of double, twin, disabled friendly and family rooms with en-suite facilities 
• Public bar
• Lounge bar
• Restaurant and function suite
• Commercial kitchen with freezer room and washroom
• Ladies and Gents WCs
• Storerooms
• Beer garden and patio

7 of the bedrooms are within the main building with a further 5 contained in the inter-connecting building as described above.

MEASUREMENTS

According to our recent measurement survey the premises contain the following approximate gross internal areas:

*A breakdown of floor areas/rooms sizes is available on request

Terms

TRADE

Carefully developed over the last 17 years by its present owners, Dave Bennet and Karen Massey, this popular venue has grown from just two letting bedrooms to twelve.  Originally a bakehouse, until it was converted to a coaching inn in the 1800s, the low-level elongated building - much larger inside than its façade suggests - commands a high-profile on Denholm’s main street.  It overlooks the historic village green while from the rear the view takes in Ruberslaw, an iconic conical hill on the south bank of the river Teviot. It is a few miles midway between two of the region’s most historic towns - Hawick and Jedburgh.

In addition, the hotel benefits from a large, adaptable function space, dining room, cosy public bar, lounge bar, and south-facing patio beer garden.  A new owner can also expect to incur very low energy bills thanks to a biomass boiler which, courtesy of the transferable Renewable Heat Incentive, will result in free heating until 2034. Each of the immaculately presented bedrooms, meanwhile, have received upgraded Smart TVs.

Fully inclusive for wheelchair users, the accommodation is configured to provide a mix of double and twin rooms as well as three ground floor bedrooms, a family room, and disabled room. As a result, the inn maintains four/five-star ratings and excellent occupancy levels.  The mix of Scottish-themed dishes, pub classics, popular Sunday Carvery, and two bars, attract an established local clientele in addition to trade largely generated from tourism. Denholm is also well connected and easily accessible to the nearby A68, which links Edinburgh and the south of Scotland with the north of England.

The lifestyle in this part of the world is second to none. Denholm is an idyllic village with a nursery, primary school, village shop, post office, café, and restaurant – nearby Jedburgh and Hawick have more extensive amenities and facilities – while the surrounding hills and rolling countryside offer unlimited opportunities, including waymarked walks and cycle routes, horse-riding, golf, and some of the best game fishing in Scotland.

The business currently has five full-time staff (including a hotel manager) and several part-time support staff.  While the owners assume an active role in the day-to-day running of the business, they are now looking to retire. Through separate negotiation they would be prepared to sell their four-bedroomed bungalow home within the village, only a few minutes’ walk from the inn, should a new owner prefer separate accommodation. Turnover, based on 11 months with some restrictions at times, is £552,000 with a healthy, six-figure net profit recorded. Full audited accounts are available to interested parties.

STAFF

There are currently 5 full-time staff, including a hotel manager, with a number of part-time support staff.  The current owners take an active role in the day to day running of the business but are now seeking to retire. 

TUPE will be in effect.

LICENCE

The premises benefits from a Premises License under the Licensing (Scotland) Act 2005.

UTILITIES/SERVICES

Main drainage, electricity and water are all connected to the property. 

Heating and hot water is provided by an on-site biomass boiler. It was installed by the current owners and has reduced heating bills for the property to nil. The Renewable Heat Incentive (RHI) is transferable to new owners and runs until December 2034 which means there is no cost for the wood pellets supplying the boiler.  

The property also has the benefit of CCTV and a burglar alarm. 

ENERGY PERFORMANCE CERTIFICATE

The Energy Performance Certificate rating is pending.  

RATEABLE VALUE

According to the Scottish Assessor’s website (www.saa.gov.uk) the subjects have been entered into the valuation roll at £37,500. The uniform business rate for the current year is £0.49 pence in the pound.  

TENURE

Heritable (Scottish equivalent of freehold).

PRICE

Offers over £795,000 are sought for the heritable property, the trade fixtures and fittings, furnishings and equipment, together with the goodwill of the business to be sold complete as a going concern.  

Stock in trade will be purchased at an additional price at valuation at the date of entry.

OFFERS

Each party shall be responsible for their own legal costs incurred in connection with the transaction with the eventual purchaser liable for any LBTT and VAT thereon.

FINANCE/BUSINESS MORTGAGES

To assist parties expressing an interest in purchasing our client’s property, introductions can be made to specialists involved in the provision of business finance and commercial mortgages in Scotland.

VIEWING AND FURTHER INFORMATION

By contacting the joint selling agents, Allied Surveyors Scotland and Hastings Legal.