Investment helps coastal retreat bounce back from pandemic

Yorkshire-based coastal hotel, Raithwaite Sandsend, is targeting expansion after securing a £250,000 investment in 2020.

This comprised £100,000 from NPIF – BEF & FFE Microfinance, which is part of the Northern Powerhouse Investment Fund, and £150,000 directly from Business Enterprise Finance (BEF).

With Covid-19 lockdowns temporarily closing down the hospitality industry in 2020, the hotel faced significant challenges during the pandemic, with minimal cashflow to keep the business running.

Thanks to the support from NPIF & BEF, the hotel was able to continue operating, which has led to a return of pre-pandemic level guest numbers. 

Raithwaite has plans to boost its offering by adding nine new bedrooms, four new spa treatment rooms, and five off-grid woodland rooms. 

As of September 2022, the hotel is now 100% carbon neutral, and opened its organic kitchen garden in late 2021, as well as installing electric car charging points across its site.

Over the next few months, Raithwaite plans to install low carbon wine-kegs and introduce technology systems to eliminate paper checkouts. 

Toby Hunter, hotel owner, said: “ The investment from NPIF and BEF came at a fundamental time for our business which helped us start the post-Covid period at an advantage. It is now a flourishing hotel with a viable and positive future with a point of difference.”

“We are planning ahead to accommodate even more guests as it is clear people are flocking to the countryside. Our green ambitions remain at the heart of what we do and we’re excited to become leaders in eco-tourism.”

Mark Iley, investment manager at BEF, said: “This was a complex case that could not be solved by high street lenders.

“Our decision to lend satisfied our commitment to positively impact to hospitality businesses in North Yorkshire with flexible finance.

“In doing, so we helped to safeguard jobs and sustain the growth of this wonderful tourist attraction.”

Sean Hutchinson at the British Business Bank added: “The tourist economy is central to the upkeep and sustainability of the Yorkshire coastline, and we are proud to have played a part in keeping this iconic hotel up and running.

“Raithwaite Sandsend brings people from all over the world to this beautiful part of the country, and it is great to see it expanding to match the deserved demand it is experiencing.”