On the crest of a wave
Golf membership is boosting the bottom line at the Brown Trout Golf and Country Inn. A stairlift to the restaurant is proving popular with both disabled and elderly people. And, despite the uncertainty of the peace process, business for the summer months is now looking up.
The Brown Trout is to have a new addition. After several weeks' research, Bill O'Hara has decided to go ahead with plans to develop eight self-catering apartments in the hotel's grounds.
The two-bed luxury apartments will be completed in time for the 1997 season. Each will contain two double beds, en suite bathrooms and be finished to a high standard.
Each bedroom will have separate access and there will be a shared kitchen area. This will enable Bill to sell the units either as two-bedroom apartments or two separate one-bedroom units. If the hotel is full, they will be sold as additional bedstock.
Bill believes this type of flexibility is the key to making the concept work. Two days spent at the recent Travel Trade Workshop at the Radisson Roe Park Hotel in Limavady were enough to convince Bill that his project was feasible.
The workshop, organised by the Northern Ireland Tourist Board (NITB), brought tour operators from all over the world to Northern Ireland to meet with hoteliers and discuss what Northern Ireland has to offer.
Many golf specialists had requested meetings with Bill, and it was here that he was able to sound out opinion on self-catering apartments.
"The reaction was generally very positive," confirms Bill. "European tour operators were particularly interested, although it is more difficult to get the Americans on board. They look at the Brown Trout on paper and see that it is only two-star. I need to get across to them that the apartments will be aimed more at the luxury, four-star end of the market.
"In any event, I don't think Americans will be big users of the apartments. They have such little leisure time that they tend to want a two- or three-centre golf holiday rather than a week in one venue."
Total cost of the project will be about £450,000. Some of the funding will come from Bill's father, William O'Hara, who wants to invest capital he accrued when he sold the Royal Hotel in Bangor last summer.
Bill hopes the remainder will be provided by the NITB under its Tourism Development Scheme, although this is not certain.
According to the NITB's literature: "There is no fixed or standard amount of assistance, and each case is negotiated individually. However, in practice, total value of assistance is likely to be in the range of 20-25% of the eligible costs."
Rates still have to be decided, but will range from £300-a-week for a two-bed apartment in low season, to £550 a week in high season.
On a quick calculation, Bill estimates worst-case net revenue of £55,000, based on 20-30% occupancy in the winter and 55-60% in the summer.
If this does occur, Bill's father would receive a return on his investment and most costs should be covered. Bill hopes the apartments will run at near to 100% occupancy during the summer, which would then tip the venture into profit.
Even though they will be in the grounds of the Brown Trout, the apartments will operate as a separate company. This is necessary if Bill's father is to gain maximum relief from Capital Gains Tax. Exact financial details still need to be decided, but it seems likely that Bill will pay his father an index-linked fixed sum. Anything he makes over and above this will be profit.
Diversifying into apartments should also help guarantee occupancy earlier in the season. Bill believes prospective users of the accommodation will book them early for use as a main holiday, rather than make a late booking for a short break at the Brown Trout.
One worry is that providing self-catering will detract from the Brown Trout's much improved food. Even so, Bill remains philosophical. "Even if they cook their own breakfast they will probably come and eat in the restaurant in the evening. And this will give the overall impression of being busy on quieter weekday nights."
Despite continuing political uncertainty, the general atmosphere at the Travel Trade Workshop was optimistic. Most European buyers were still keen to promote Northern Ireland. The only note of doubt came from the American market. "Americans will come if the peace process comes back. Getting them to come otherwise is going to be difficult," summarised one specialist golf operator.
Bill is aware that it often takes two or three years for such events to bear fruit.
Last year's Travel Trade Workshop has just brought some business from Fife-based Da Study Tours, which deals in educational trips along the north coast of Ireland.
Bill has struck a deal which guarantees him five trips a year of three to four days each, including a Sunday stopover. This will mean a room allocation of eight twins and four singles, and represents the maximum group number Bill believes the Brown Trout can accommodate at any one time. Total revenue from Da Study Tours for the year will about £15,000.
In the midst of planning for the coming months, Bill has another major project in the offing. He is official coach to the Irish Olympic sailing team and will spend most of July in Atlanta, Georgia. When he gets back he will start immediately on the project of building the apartments. And for this he is hoping for a fair wind.
