Isles of Scilly hotel with development permission is put up for sale

The leasehold, which expires in 2107, is being offered at a guide price of £2.5m.

The St Martin’s on the Isle Hotel is located on St Martin’s, the third largest of the Scilly Isles, and currently operates on a seasonal basis. It is open for seven months a year, from March through October. Trading figures from last year set the business’ sales at £1.467m, with EBITDA of £283,000.

Bedrooms and facilities​

Located on around 2.8 hectares including a private beach, the hotel includes 27 double rooms and three double suites. The property is designed to appear as a small hamlet of cottages, with the bedrooms and public rooms facing the sea.

The property, which is a member of Pride of Britain Hotels, also includes onsite staff accommodation, comprising of 12 single and eight double bedrooms.

Facilities include a heated indoor swimming pool as well as a bar, an informal 60-cover brasserie and a 60-cover fine-dining restaurant.

Planning permission​

Planning permission has also been approved for the construction of four new two-bedroom apartments within the grounds.

In addition, consent has been granted for the conversion of the existing hotel to provide six two-bedroom apartments, five three-bedroom apartments and four four-bedroom apartments providing a total of 19 apartments. The existing planning assumes the loss of the first floor restaurant together with the staff accommodation block. The Brasserie will remain within this scheme, with some improvement.

“With its reputation and the advantage of the planning permissions, this represents an excellent opportunity for a forward-thinking individual or existing operator who is prepared to continue to invest in the hotel’s future potential,” said Simon Stevens, director of Christie + Co, the property agents who are handling the sale.

Location and access​

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St Martin’s is situated about two miles north of St Mary’s, the administrative centre of the Scilly Isles, and has a population of 110 in the three hamlets of Lower Town, Middle Town and Higher Town.

The island is accessible from Penzance on the mainland, which has a daily ferry and hourly helicopter service during the summer months. Flights from Bristol, Exeter, Newquay and Southampton land at St Mary’s from which ferries or water taxies are available to take passengers to St Martin’s.

With a beach-front location including a private quay overlooking Tean Sound and Tresco, the property is surrounded by high ground and two granite hill cairns.