ST – PATRICKS INTERNATIONAL COLLEGE

Managing Financial Principles & Techniques

UNIT CODE: 13

Evaluation of the financial returns of a Mill House Hotel at Little Hallingbury Mill.

Student ID: 109794
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Method of analysis
Financial model of the business – structure
Fixed cost and overheads
Marginal contributions from profit centres
Cash flow forecasts
Data requirements
Data resources
Analysis of data
Results analysis
Conclusions
Appendices
Spread sheets
Original advertisement
References

BACKGROUND

A licenced hotel for sale, located at Little Hallingbury Mill, in a pretty rural setting next to a colourful narrow boat marina and on the path of several attractive riverside walks. The location of the hotel is about 5 miles from the Stansted Airport, 3 miles from Bishop`s Stortford, 6 miles from Harlow, 1.5 miles from Sawbridgeworth.
The mill is a grade 2 star listed building of historic significance in the local area and has the mill machinery as a centre piece. The Mill contains 10 lettable bedrooms, office and living accommodation, bar/bistro reception and a pretty 40 cover restaurant at 1st floor level.
The mill house is next door and provides 12 further bedrooms; two of the rooms are used for staff accommodation. The premises benefit from both a private car park capable of accommodating more than 25 vehicles and fishing rights in the Mill stream.
The hotel is very well positioned to benefit from the 2012 Olympics and Paralympics and resultant legacy business.
Good marketing activities and good focus on customer service will guarantee the increase in the hotel and restaurant occupancy levels.

Objectives
To produce a report of Financial returns of Mill house hotel accommodation, that evaluate the hotel’s financial position as on going concern to attract investors based on