Money maker: Growing trend for pubs with beds

The increase in the number of pubs and restaurants providing accommodation has been an enduring feature of the licensed trade’s recovery from the recession, which first hit seven long years ago.

The established criteria of choice for many niche and emerging multiple-site operators is a multi-faceted offer, most typically comprising a broad range of cask and craft ales; 60-plus cover dining; five or more letting bedrooms; and good outside trading facilities, all housed within characterful properties in attractive village and suburban locations.

A good food offer that complements a sound wet trade is essential, particularly now the number of drinking-only establishments is in decline. Providing good-quality letting accommodation is also an increasingly popular trend.

This is due largely to a drop in demand for wedding and events venues in the £15,000-plus segment and a significant rise in interest in more reasonably-priced venues — those ranging from £5,000 to £8,000.

In addition, switched-on operators recognise the value of broadening the customer experience, knowing that providing somewhere comfortable to spend the night can increase revenue as well as frequency of customer visits.

The potential for adding letting accommodation, if it is absent at the time of going to market, can be sufficient in itself to whet prospective buyers’ appetites.

Quality is, of course, key, both in terms of the physical standard of the letting rooms and the professionalism of staff working there.

Value for money is paramount. Customers are easily turned off both by offers they perceive as “cheap” and by those they perceive as overpriced. Great value in the standard offer is what you should aim for.

Your customers should feel they’re getting something special without having to pay over the odds for it.

Get it right and you will be rewarded admirably. Get it wrong and the market can be very unforgiving.