Profits up for licensee after Punch deal
A licensee is expanding his business after buying the freehold of his pub from Punch last July.
Rob Williams has been granted permission to add 15 ensuite double guest bedrooms to the Holly Bush Inn at Winterly, Cheshire.
After reading in the Morning Advertiser last year that Punch was looking to sell some pubs he bought the freehold after five months of negotiating with funding help from Lloyds TSB.
"Owning our own pub was always the long term plan," said Williams, who with wife Rebecca has run pubs with Mitchells & Butlers, Regent Inns and Barracuda for 13 years.
"We are a semi-rural pub looking to diversify and generate some extra income. There isn't a lot of accommodation in the area so we decided to apply for planning permission for guest rooms."
The Holly Bush Inn currently trades at 50:50 for wet and dry sales, but Williams is hoping that an average of just 50% capacity a year in the new guest rooms will bring in an extra £200,000 in sales.
However, he would expect capacity to reach 75% and is planning to charge around £60 for a standard room with breakfast and £85 for an executive room with breakfast.
Building work for a new 30-cover function room and standard, premier and two executive rooms will begin next autumn and cost around £350,000.
Since owning the freehold, the couple has enjoyed a 15% increase in like-for-like sales over the last year. "Our profit margins are massively different now we are without a tie," he said.
Meanwhile, the Williams', who have already invested a great deal in the exterior of the pub since buying the freehold, are planning a complete refurbishment of the inside for early next year. No budget has been set.
