The Langham Hotel: The DIY hoteliers

Sitting on the sunny terrace at the Langham hotel in Eastbourne, East Sussex, just yards from the seafront and beach, owner Neil Kirby seems remarkably relaxed for a man who's working a 100-hour week in the resort's busiest season.

But with 38 years' experience, Kirby is well used to the demands of the hotel business. Starting in the late sixties as a kitchen porter at London's Grosvenor House, he worked his way up to deputy general manager before going on to manage properties including Berystede at Ascot, Pennyhill Park in Bagshot, Surrey and most recently South Lodge in Lower Beeding, West Sussex. But at the age of 54, he decided it was time to run his own hotel.

Which brings him to the Langham hotel. Having bought an apartment in Eastbourne's marina nearby, Kirby was impressed with the town's potential and started looking for suitable properties.

After spotting the Langham while jogging on the seafront one day, he and his wife Wendy decided to put in an offer of £1.95m for the 999-year lease. The sale on the Grade II-listed Victorian hotel completed last July, although the Kirbys didn't start running it until October.

Asked why he chose Eastbourne, he's in no doubt. "It's a tremendous place. My wife and I love it here. Yes, nearly half the visitors are over the age of 60 but there's now a younger generation coming through and the council is very proactive. And I've got a soft spot for older people anyway," he says.

Kirby is also convinced that Eastbourne's future is bright, and estimates the value of the business has risen by £250,000 since he bought it.

Blood pressure Not everything has been easy, though. To fund the venture, Kirby had to remortgage the family house, cash in several pensions and borrow £1.3m from the bank.

"I did the whole thing on my own, and even though I'm a fit guy, the blood pressure did go up," Kirby remembers. "I was trying to raise funds, doing all the research like organising mystery guests, and still working very long hours in my job. And I was aware that if I failed, I'd lose a lot."

After the sale went through, Kirby had a three-month notice period to complete at South Lodge. With only weekends free for his new business, it meant that Wendy, despite having no previous industry experience, had to oversee everything at the Langham.

When Kirby finally took over the reins in October he admits it was tough going at first. "We had attitude problems with some of the staff, so we got rid of half of them in six weeks. The hotel also needed a fair amount of work but, as we had inherited bookings, we had to get through Christmas and New Year first before we could really make a start on anything."

Now, a year on from completion, Kirby seems fully settled and has been able to turn his attention to the challenges ahead. He has a five-year strategy for the 83-bedroom hotel, previously owned by the same family for 90 years, including a complete refurbishment throughout, expansion of the restaurant and raising the rating from three to four stars. He also hopes to increase annual turnover from the £933,000 achieved by the previous owners in 2004-05 to £1.05m in the year to 30 September 2006.

The target market is 90% leisure, made up mainly of individual and group coach bookings. Kirby is already tapping in to the weddings market with 20 bookings this year, and he's keen to capitalise on the developing local conference trade too, though he acknowledges this could take a while because of the town's lack of suitable venues.

Helping him are Kirby's family, who are all very much involved in the business. Wendy is head of housekeeping and his son David, who lives in, works in the five-strong kitchen brigade as a chef, having recently finished his training. Daughter Nicola does the bookkeeping and son-in-law James Innes is in charge of purchasing and IT, with the pair also living on the premises.

Kirby readily admits it has taken time for everyone to get used to working together, although this was all part of the plan. "There have been arguments but I'm getting my head round it slowly," he says. "To be fair, it's been a big upheaval for them all too. But there are real plusses, like getting to spend time with my granddaughter."

Hands-on role Not that Kirby has too much spare time on his hands. He now employs 35 full- and part-time staff but evidently feels happy being in a hands-on role himself. "I hate being stuck in an office," he says. "I like to lead from the front, out with the staff and customers. You'll often find me helping out with breakfasts or laying the tables."

His enthusiasm extends across all areas of the business, right down to the refurbishment, much of which has been done so far by Kirby and his family. And despite narrowly escaping a broken hip when he fell off a ladder, and being hit by a piece of masonry when pulling down the lobby ceiling, he remains undaunted.

"There's no more borrowing so I'm paying for the refurbishments myself, and it makes sense to try and save money where I can," he explains. One tactic has been to cut back on staff. So far he's saved a hefty £90,000 on wages, partly by taking over the role of GM himself and "not paying myself much", as well as cross-training his team.

Kirby's other successful cost-saving strategy has been to change his suppliers. "I fired them and now I don't have any contracts at all," he says. "I buy bread from Tesco's, which costs me 20p a loaf instead of 60p, and they deliver too. The internet is a magical thing." Other produce, like meat, fish and vegetables, he buys locally. "It helps to be hands-on because you know exactly what's coming in and going out. Now my son-in-law and I go through all the bills and in one year, I've saved around £80,000," he adds.

That money has gone towards the first stages of renovating the building. So far, the reception area has been completely refurbished, with Kirby doing the designs himself. Gloomy wallpaper has been ripped off, ceilings raised to their original height, new chandeliers installed and a new hand-made oak reception desk is in place.

Three bedrooms out of the 83 have also been redecorated, again with Kirby and his wife choosing the designs. A four-poster bed was bought on eBay for £450, and costs have been kept down further by painting and decorating themselves.

Kirby's aware that there's a long way to go, with the bar, kitchens and lounge all needing attention, and new equipment needed in the kitchens. But for now, his priority is to make the most of the summer season. The hotel will be open all year, and he's already thinking of ways to boost trade in the quiet winter months. But that all seems a long way off right now.

Factfile The Langham hotel
Royal Parade, Eastbourne, East Sussex BN22 7AH

• Lease £1.95m for 999 years
• Rates £24,000 a year
• Bedrooms 83
• Average room rate £44
• Occupancy 60%
• Net turnover (under previous owners) for year to 30 September 2005 £933,000
• Target net turnover for year to 30 September 2006 £1.05m
• www.langhamhotel.co.uk

Ask an expert Will Thomas of Fleurets offers some advice on buying in a seaside resort…

• Some locations can offer extremely good value. Eastbourne currently loses out to more fashionable cities like nearby Brighton, but commercial property prices are as much as 50% cheaper.
• Do your research. Speak to the council and try and find out about planning applications. What companies are moving to the area? Are any big marketing campaigns coming up? Are there any big events planned?
• Look at conference facilities. Are bookings regular? Are there plans to extend facilities or build new ones?
• Don't just think about in-bound visitors. Think about local residents. What goes on midweek? Resorts are usually seasonal, so what opportunities may there be in winter?