Hustyns Hotel & Spa
Region: South West
Location: Wadebridge, Cornwall
Programme: Coronavirus Business Interruption Loan Scheme
As with all hotels across the country, the emergence of COVID-19 meant Hustyns Hotel & Spa had to shut down for a number of months to comply with government guidelines. Ceasing trading affected the business’ revenue significantly, which is why it applied to the Coronavirus Business Interruption Loan Scheme (CBILS) for support.
Read what it had to say in this CBILS case study.
British Business Bank: Can you tell us what your organisation does?
Ravi Gupta, managing director of Hustyns Hotel & Spa: Hustyns Hotel & Spa is a country resort set within a 100-acre estate 3.5 miles south of Wadebridge and eight miles west of Bodmin. As well as 37 guest rooms, it has a brasserie and a fitness centre with amenities such as an indoor pool, a gym and a sauna.
How did COVID-19 affect your business, and why did this mean you needed a loan from the Coronavirus Business Interruption Loan Scheme (CBILS)?
Like all hotels and similar hospitality businesses, we were made to shut down during the months of lockdown in line with the Government’s guidelines. As a result, the hotel had to immediately cease trading and obviously this had a great effect on our cashflow.
How did you find the application process?
Swift and efficient, at four weeks.
The CBILS loan means that we cannot only weather the latest lockdown, but make investments in our resort and know that our business’s future is secure for the next two years.
Ravi Gupta, managing director of Hustyns Hotel & Spa
Can you provide a specific example of how you used the funding to bring about a positive change (or changes) to your business?
Once the lockdown was lifted, we immediately scaled up operations and staff levels for full occupancy. The CBILS loan means that we cannot only weather the latest lockdown, but make investments in our resort – such as a refurbished restaurant and a new ‘glamping’ offering – and know that our business’s future is secure for the next two years.
How has the CBILS loan helped your organisation to weather the outbreak? And what might have happened if you hadn’t received it?
COVID-19 has posed unique challenges to the hospitality industry – it’s been a real year of volatility. We expected 2020 to be a significant year as we’d invested in the hotel. We know that we have a good business model and strong demand, but after strong revenue and profit growth in 2019, the lockdown meant we experienced a difficult spring and early summer 2020 when we couldn’t let out rooms or lodges.
Receiving the loan from CBILS has allowed the business to go ahead with its investments, rather than face the risk of defaulting on its existing loans.