A proud Boath

It's been three years since Don and Wendy Matheson converted Boath House in the Scottish Highlands into a hotel, restaurant and luxury beauty retreat. Their success has been due to hard work and sharp marketing tactics. Jessica Gunn revisits this former adopted business.

"I think that this year we've turned the corner," muses Don Matheson, one half of the married team who own and manage Boath House in the Scottish Highlands. "Last year we broke even, but this year we're beginning to see profit."

Matheson and his wife Wendy have invested around £627,000 since they bought the Georgian Boath House and 20 acres of surrounding land in 1997 and converted it into a hotel, restaurant and beauty centre.

Profits have not increased through expansion, however. Boath House has only seven bedrooms and 30 seats in its restaurant. "We have no plans to expand," Don confirms. "That's not the way we see ourselves. This is a lifestyle thing."

Their rising success is down chiefly to consistently astute marketing, for which budgets are going up every year, from £6,000 for 2001 to £10,000 to £11,000 planned for 2002. PR efforts were originally focused on building and increasing awareness of their existence as a hotel and restaurant, but recent reassessment has led to a strategic repositioning to maintain their momentum.

"We've brought in a new consultant, Roger Niemeyer, to help reposition ourselves for year-round business," says Don. "We want to generate Europe-wide interest." Niemeyer has estimated an expected return rate of £20 in business for every £1 invested in marketing.

Since November last year, the Mathesons have also been working with local PR agency the Raintree Company in targeting the home market. "It's a tougher market to get," says Don, citing a target rate of return of £12-£15 for every pound invested. "So far it's been very successful, though."

The Mathesons' marketing schemes do not stop here. Boath House is close to several golf courses, which attract mainly American but also European visitors. Boath also offers specialist treatments in its beauty spa, in which the Mathesons have invested almost £100,000 to date. "We always saw our beauty treatments as the third leg of the stool," says Don. "But our initial focus was on the hotel and food."

Using beauty therapy as a marketing tool has proved effective. This year has already seen double the amount of beauty-related business as 2000. "As a profit centre it's not losing any money this year," says Don, "although last year we were running at a small loss."

A taster beauty package costing £195 per person including dinner, bed and breakfast, or three-day package for £310 with a half-day of beauty treatments, dinner, bed and breakfast, have worked as successful enticements to increase room occupancy. By Don's estimate, this has accounted for about 15% of rooms occupied this year.

Estimated turnover for 2001 stands at £250,000, up from £220,000 last year. Occupancy for July 2001 was 68%, showing an increase of 29% on the previous year. Estimated gross food and drink profit is also significantly higher at 70% for 2001 compared with 48% last year.

Increased profit from food is partly the result of Boath House now being open seven days a week to non-residents instead of five as they were until last December. New second chef Emma Barclay, brought in to support original chef Charlie Lockley and Wendy, has also added to their success. "When the head chef is not there, it's vital to have absolute consistency," says Don. "At the moment we sell three AA-rosette-standard food at two-rosette prices." Boath's restaurant offers a five-course table d'h"te menu at £35 and average spend per head stands at around £55.

Staff numbers remain low, with only seven full-time and two part-time members. Staff wages represent only 14.5% of annual turnover at Boath House.

In June last year the Mathesons set themselves a goal to add another AA rosette to the two they already hold and are awaiting the AA's decision next month with bated breath.

With expansion of the walled gardens and the establishment of beehives and orchards all planned for the future, the Mathesons will be kept busy anyway. "It's an all-consuming passion," says Don, "but we want to be one of the best."

The story so far

Wendy and Don Matheson bought Boath House, a run-down Georgian mansion just outside Nairn in Nairnshire, in 1997. From cottage industry beginnings, Boath House has now taken off as a hotel, complete with spa facilities and two AA rosettes for food. The couple are now hoping for a third rosette.

Boath House

Boath House, Auldearn, Nairn IV12 5TE
Tel: 01667 454896www.boath-house.demon.co.uk
Email: wendy@boath-house.demon.co.uk

Owners: Wendy and Don Matheson (pictured above)
Number of rooms: seven
Restaurant seats: 30
Turnover: 2000 - £220,000; 2001 - £250,000 (estimated)
Gross profit food/drink: 2000 - broke even (48%); 2001 - 70% (estimated)
Occupancy: July 2000 - 39%; July2001 - 68%
Average spend in restaurant: £55 per head
Average covers per night: 15-16
Percentage of overseas visitors: 10-15%
Percentage of overseas visitors from USA: 50-60%; 95% of these are golf-related