Skye’s the Limit Tea Room and Skye Accommodations are located in a highly prominent position within Uig benefitting from a stunning trading location with glorious views across the bay. This attractive property has a significant footprint and dates from circa 1974. The property is ideally situated to meet the high demand for accommodation on Skye and particularly for those wishing to stopover before venturing onto the Outer Hebrides. The business currently trades during the main season, closing historically in November for refurbishments before reopening the following March. New owners may choose to change this trading pattern to allow the opportunity to capitalise on low-season local, ferry and passing trade. The business has adopted a simple operating model which is ideally suited to a hands-on owner operator.
The property boasts 3 well-appointed letting rooms with owners’ accommodation over. The tea room and associated service areas occupy the balance of the ground floor. The business has a character and charm which is well received on review websites. There are 2 large external utility areas to the rear of the property which are used for servicing the rooms.
STAFF - Staffing levels currently comprise a full-time live-in manager, a full-time live-in chef / handy man and 4 part-time staff. The existing trading model sees the current owner operating a remote management function only. New owners may wish to take a more hands-on approach by living on site which could negate the need for the full staffing complement.
REASON FOR SALE - The current owner has operated the business since 2018, but due to a change in family circumstances now wishes to focus on other business interests, hence the decision to sell this profitable lifestyle opportunity.
Location
The Isle of Skye, or in Scots Gaelic 'Eilean A Cheo' meaning Misty Isle, is located on the north western coast of Scotland and is a world-renowned holiday destination for a great number of reasons, appealing to a wide range of visitors. Skye’s the Limit Tea Room and Skye Accommodations are located directly opposite the Uig ferry terminal. The properties prominent roadside position is ideal to capitalise upon this busy location. Uig hosts the main ferry terminal linking Skye to the Outer Hebrides. This terminal facility is about to be remodelled, with completion due in 2023. The work is being undertaken to meet the needs of the new ferry vessel. This development is expected to increase visitor numbers to the village. The village also has other local attractions; the Uig Pottery, The Isle of Skye Brewing Company and a brief drive away is The Old Man of Storr. Uig is a short car journey from Skye’s principal town of Portree.
Portree is the cultural hub for Skye, and the largest settlement with a population of about 2500. During the season the town’s population swells many times over with the influx of tourists. The name of the town comes from the Gaelic Port-an-Righ, which translates as "King's Port" and dates to a visit by King James V. Portree is a bustling port and a thriving cultural centre, and was also the place where Bonnie Prince Charlie spent his last days in Scotland. Among the attractions of Portree is the award winning Aros Centre which incorporates an exhibition capturing the drama of Skye's history. The Aros centre is also the access point for walks in Portree Forest. Portree has an abundance of interesting shops and is a must-see location for those visiting the Isle of Skye.
Skye’s rugged Cuillin Mountains are world renown to walkers and climbers. Visitors are drawn to the spectacular Trotternish Ridge to the north as this wild area is dominated by astonishing rock formations such as the Old Man of Storr, Kilt Rock and the truly extraordinary pinnacles of the Quaraing. Fishing, water sports and genealogy are constant attractions along with breath-taking scenery, castles, distilleries and a Highland welcome.
The influence of the sea is also never far away (you are never more than 11 miles from sea) with sea fishing and a wide range of water sports available, including diving and kayaking. Wildlife cruises sail from various locations from which you might be able to spot seals, lovable otters, great golden eagles or even rare and mighty sea eagle.
Accommodation
Skye’s the Limit Tea Room and Skye Accommodations have a well-established trading history, operating above the VAT Threshold with a turnover of circa £187,000 (Net of VAT) providing an adjusted net profit of circa £70,000 as at March 2020. Full accounting information will be made available to seriously interested parties subsequent to formal viewing.
Tea Room - The Tea Room is one of a limited number of establishments where food can be purchased in Uig, resulting in demand for this service. This makes the tea room a great business opportunity. Being able to offer both internal and external seating has provided flexibility when dealing with the current trading uncertainty placed by COVID in a very positive manner. The tea room offers hearty meals, light bites, baking, soft drinks, coffees and teas, which is ideally placed to suit passing trade.
B&B Accommodation - The bed and breakfast business operates within the house, with a choice of a continental breakfast or traditional full Scottish breakfast. This is popular with couples, groups, families and the lone traveller. The 3 bedrooms provide single, double and twin accommodation which suits a wide variety of guests. The B&B business utilises portal websites plus has an effective website (www.skyeaccommodations.com) which has a link to an automated booking platform.
The Caravan Accommodation - There are 6 static caravans located to the rear of the property. There is dedicated parking for each caravan on the property, all accessed via the drive located to the left-hand side of the building. The caravans have been let on a daily or weekly basis.
OWNERS / STAFF ACCOMMODATION - The dedicated owner’s accommodation occupies the whole of the first floor. This comprises a comfortable and well sized lounge with cooking preparation area, small office area and large double bedroom with ensuite shower room.
EXTERNAL - The owner’s access is via the drive to the right-hand side, where parking is available. There is a small 2-person caravan located to the rear of this drive which acts as a utility area. Behind the small caravan is a converted single garage which is now used as a store, the up and over door has been blocked up and a modern single external PVC door installed. There is also a small utility store behind the building. The property grounds are mainly laid to grass. The property extends to circa 0.75 acres.
Terms
SERVICES - The business benefits from mains electricity, water and drainage. The central heating throughout the building is oil-fired. LPG is used for cooking within the tea room kitchen. The property is fully double glazed and is fire safety compliant. The caravans are electrical heated and have small stoves in lounge.
EPC RATING - The property has an energy rating of ‘tbc’.
PRICE - Offers Over £515,000 are invited for the heritable property complete with goodwill and trade contents (according to inventory), excluding personal items.
RATEABLE VALUE / COUNCIL TAX - The rateable value of Skye’s the Limit Tea Room is £1,000. Each static caravan is £400 except static caravan number 2 which has a rateable value of £500 (effective from 01 Apr 2017).
This should allow the owners to benefit from 100% discount under the Small Business Rates Relief scheme resulting in a liability of £0 where eligible. Skye Accommodations has a Council Tax banding of ‘E’.
Specification
- Desirable multi-faceted accommodation and tea room business located on the ever-popular Isle of Skye with stunning views over Uig Bay.
- Highly successful and easy-to-operate business model, resulting in a good level of adjusted net profit.
- Trading seasonally to include a modern tearoom with 26 covers, 3 comfortable letting bedrooms and 6 static caravans.
- Prominent trading location central to Uig, close to the ferry terminal and other complimentary amenities plus visitor attractions.
- Includes spacious owners’ accommodation, plus excellent signage and dedicated off-road parking spaces; all contained within circa 0.75 of an acre plot.