Passage House goes on market for £5.5 million

Torbay Weekly

South Devon's well-known Passage House Hotel is on the  market with an asking price of £5.5 million.

The sale is being handled by global property advisors Knight Frank and Simon Stevens Associates.

The hotel, beside the River Teign at Kingsteignton, has been under the same ownership since 1988.

Passage House owner Roger Haywood said: “Having developed the hotel from a green field site in 1988 and spent 34 truly enjoyable years’ operating the hotel, although a difficult decision it is now the right time for me to look to retirement.

"We will continue to operate the neighbouring Passage House Inn which has been in our family for nearly 70 years and we shall look forward to forging a strong relationship with the new owner to capitalise on the synergy between both businesses."

The, Passage House is a multi-faceted hotel business with income derived from the private leisure, wedding & events and corporate market.

The hotel comprises 90 en-suite bedrooms and 29 timeshare apartments, featuring extensive public areas including a lounge and bar, conservatory, restaurant, banqueting suite and two meeting rooms.

It also features an outdoor terrace, a spa and leisure club offering private membership and car parking.

Matthew Smith, Partner in Knight Frank’s Hotels team, said: “After 34 years of ownership our client has made the decision to retire from the hotel industry and we believe this represents a great opportunity for a new owner to acquire an established and profitable hotel business that benefits from a structured management team.

"There is also potential to further develop the trading performance by either continuing to operate as an independent hotel or explore the option to work alongside a global brand.

"The business has reported exceptional recent trading performance with strong forward bookings for 2022 and we expect to receive interest from an array of buyer profiles keen to capitalise on the robust South West trading performance.”

Simon Stevens, Director of Simon Stevens & Associates, added: ”Quite simply, the sheer scale of this property together with its established reputation provides an exceptional opportunity for an experienced operator to exploit its location and future potential that’s generally untapped to reposition the hotel, focus on its performance and yield manage the business.

"This is the first time this property has been on the market, so we anticipate this hotel to attract competitive interest from investors seeking such a tremendous opportunity.”