FOOD-FOCUSED HOTEL
CHAIN SATISFIES ITS HUNGER
FOR GROWTH
With its unique style, culinary excellence and commitment to 4-star luxury at affordable
prices, Home Grown Hotels has enjoyed rapid growth since its launch in 2011, thanks to
funding from Santander.
CASE STUDY
“We shared their vision, and there was also a ‘chemistry’ at
a personal level. We were also very impressed by the quality
of the product and by the track record of the owners and the
management team.”
Mike Donaldson, Santander Relationship Director
Management firm Home Grown Hotels has achieved rapid growth
by offering a unique take on hospitality. Their expanding portfolio
of hotels known as ‘Pigs’ combines a British garden food dining
experience with stylish yet informal guest rooms. Home Grown Hotels
CEO Robin Hutson founded the company in 2011 with his first ‘Pig’
appearing in the New Forest.
More pigs, please
Home Grown Hotels continued their award winning formula the
following year with the launch of The Pig In The Wall in Southampton.
The company also went on to purchase a National Trust-owned hotel
on the Jurassic coast of Dorset, taking another step in the company’s
ambitious plan to add five more hotels to its portfolio within the next
five years.
Home Grown Hotels needed a funding package to complete
refurbishment of their hotels in Southampton and Dorset, as well as
ensure the purchase of future sites. Ultimately, they needed a bank
that would take the time to understand their vision. “We began to
talk to Santander in 2012,” says Mike. “They were very keen to work
with us.”
“We wanted to open more ‘Pigs’ and we spoke to a number of banks
about funding,” says Home Grown Hotels’ Finance Director Mike Rice.
“But the country was in the midst of recession, so there was a lot of
caution in the market at the time.”
A shared vision
Santander Relationship Director Mike Donaldson recalls there was an
immediate affinity between the bank and the company. “We shared
their vision, and there was also a ‘chemistry’ at a personal level” he
says. “We were also very impressed by the quality of the product and
by the track record of the owners and the management team.”
Simple Personal Fair
What a bank should be
Mike Donaldson’s support has
been invaluable. He is always
enthusiastic and helpful.
Mike Rice, Finance Director,
Home Grown Hotels
Similarly impressed by the company’s rapid growth, positive customer
feedback, and strong brand presence, the Santander team provided
a funding package worth £4.8 million. A portion of this funding went
to complete the refurbishment of The Pig In The Wall, while the
rest went towards developing The Pig On The Beach site in Dorset.
During the course of these developments, an unexpected opportunity
suddenly arose.
An unexpected development
The owners of an attractive country house near Bath were looking
to sell. Fortunately, Santander had already taken the time to fully
understand the company’s portfolio and establish a good relationship,
enabling them to make a fair decision to provide a further £4.75 million
in funding for this new acquisition.
Director was unfailingly supportive, as Mike Rice explains. “Mike
Donaldson’s support has been invaluable,” he says. “He is always
enthusiastic and helpful.”
With The Pig Near Bath opening in March 2014 and The Pig On The
Beach opening three months later, Home Grown Hotels is currently
riding high on its Santander-fuelled success. “By the end of this year
we will have four hotels and the plan is to open two more in 2015 and
2016,” says Mike. The company already expects to see its turnover
treble, having now doubled its number of trading locations in the South
and boosted its already considerable market share. And Santander will
stand by the company as it takes further steps on its growth journey.
Company name: Home Grown Hotels
Sector: Hotels/Hospitality
Management team from Home Grown Hotels have carved out a
profitable niche within the hospitality sector with its ‘Pig’ brand
of hotels, which combine boutique hospitality with a British
garden food dining experience.
With one site in the portfolio, the company was looking to add a
further five sites to its portfolio within the next five years.
Through a close working relationship, the Santander team shared
the company’s vision and provided them with a simple funding
package of £4.8 million to refurbish two new sites.
Home Grown Hotels’ Mike Rice believes Santander’s responsiveness
proves the bank are more interested in long-term growth for the
benefit of the customer rather than scoring a quick win for the shortterm benefit of the bank.
The chance to acquire a fourth property arose the following
year and Santander was able to respond quickly to secure its
purchase, having already taken the time to understand the
company’s portfolio and its vision for growth.
“As the bank was already funding The Pig On The
Beach it would have been very easy for them to decline
funding for our fourth premises,” he says. “But they
have always been positive and we see them as a very
easy bank to work with.”
Mike Rice, Finance Director, Home Grown Hotels
Solid support
In brief
With four hotels now trading, boosting the company’s market
share and trebling expected revenue, Home Grown Hotels
are now progressing towards fulfilling their growth plans, and
Santander aims to take them the rest of the way.
Solutions delivered:
All lending is subject to status.
Throughout the unpredictable process of negotiating hotel
purchases and completing refurbishments, Santander’s Relationship
Business Loan (totalling £9.75 million)
Overdraft (£200,000)
Asset Finance
Day-to-Day Banking
Deposit Account
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