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Auld Cross Keys Inn, Main Street, Denholm, Hawick, TD9 8NU
Offers Over £795,000
For Sale
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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.  

THE PROPERTY

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.

ACCOMMODATION SUMMARY

  • 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:

Floor

Sq M

Sq Ft

Ground

340.16

3,661

First

49.34

531

Attic

55.84

601

Inter-connecting building

96.08

1,034

TOTAL*

541.42

5,827

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

TRADE

The Auld Cross Keys Inn has been held under the same careful ownership for the last 17 years.  Starting with just two letting rooms the owners have gradually developed the property into what it is today.  From the initial warm welcome to the high-quality meals and impeccable cleanliness, the hotel has an excellent reputation amongst locals and visitors alike.  Trip Advisor shows four and five-star ratings from over 380 reviews; 9.0/10 on Booking.com from over 160 reviews and 4.6/5 stars on Google from over 270 reviews.

The hotel offers 12 letting bedrooms.  The rooms are generally let for between £65 per night for a single/twin bedroom and £100 per night for a double bedroom, including breakfast.  Occupancy levels are generally good.

A large spacious dining area caters for private dinner parties in the patio room which leads out onto the south facing beer garden.  Meals are served in the dining room, lounge, public bar or beer garden with a mix of Scottish themed dishes and pub classics, as well as chef specials on the menu. The Sunday Carvery is very popular as is the takeaway service introduced in response to Covid boosting food sales turnover following an enforced period of closure.

The public bar is very popular with locals and boasts two hand pulled cask conditioned ales, a selection of traditional beers as well as an array of spirits and over 40 malt whiskies.  There is pool table, open fire- place and a wall mounted TV for showing live sport.   The two bars account for around 40% of the business turnover and barrelage reports for 2017-2020 can be produced on request.

Trade is predominately generated from tourism due to Denholm’s central location in the Scottish Borders and its close proximity to the North of England.  The area is a draw for people wishing to explore outdoor pursuits as well as catering for locals too.

Significant investment has been made in the property over the term of ownership, including the addition of a biomass boiler which has reduced heating bills to a minimal amount. Most recently, the owners have acquired upgraded televisions for each of the rooms and a new pizza oven which has proved to be very popular. 

Business turnover was impacted because of the coronavirus pandemic but stood at around £585,000 in 2018. Following the enforced closure of the hospitality trade, the business has begun to bounce back boosted by a surge in staycations.  In the period from 1 April 2021 (hotels were permitted to reopen from 26 April) to 31st July 2021 a net profit in excess of £110,000 was recorded on sales of £178,400.

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: 

Iain W. Mercer BA, AssocRICS

Director of Commercial Agency (East)

 

T: 0131 357 4455 / 07713 626 887

E: Iain.mercer@alliedsurveyorsscotland.com

 

Bernadetta Majewska BSc (Hons)

Graduate Commercial Surveyor


T: 0131 357 4455 / 07917 924 112

E:Bernadetta.majewska@alliedsurveyorsscotland.com

 

Hastings Legal

T: 01573 225 999

 

 

  • Immaculately presented, extensive 12-bed hotel
  • Situated in the picturesque village of Denholm, 3 miles east of Hawick
  • Function space, lounge bar and south facing beer garden
  • Ranked 4.5 ‘Excellent ‘on Trip Advisor
  • On site biomass boiler which reduces heating costs to nil
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