New Steine Hotel

Herve Guyat's dream of a little house beside the sea was somewhat grander than most people's plans. Herve had his targets set on a hotel on Brighton's prestigious seafront.

After a decade in the London hotel trade, ending up as sales director with a major hotel near Hyde Park, Herve decided to put his knowledge to the test by opening his own establishment.

When Brighton's 12 room New Steine Hotel came on the market, it looked ideal. It was a dream come true, as Herve, who was born in Biarritz, France, explains:

I wanted to open a different kind of hotel, one that offered a personal touch, something that would be more of an experience rather than just staying in another boring hotel.

I was actively looking at Brighton because it is a busy town, yet still close to London where I have a home and a lot of trade contacts. I thought I had found the perfect property - a town house more than a hotel - with which I could create my vision.

Herve contacted a commercial loans broker and was put in contact with Paul Ragbourne, Sales Manager with Abbey business, which has extensive experience of lending to the hotel and hospitality trade.

Paul was impressed by Herve's plans and was keen to back the project. However, Paul also felt that there was room to manoeuvre on the asking price for New Steine Hotel and instructed specialist valuers to value the property and the business.

The valuers came back with a value for the New Steine that was considerably lower than the sale price. This news could possibly have caused the sale to fall through, scupper Herve's plans and lose him the money he had already spent on solicitors and surveyors. Herve, however, was undaunted.

One of the good things about Paul Ragbourne at Abbey business was that he was honest with me, he warned me about the potential problems and pitfalls of buying a commercial property. I had done a lot of business planning myself, but Abbey business was the only lender that seemed to understand what I was trying to do.

His belief paid off and the vendors accepted Herve's new offer, a saving of £50,000 over the original asking price, and Abbey business was happy to provide Herve with the mortgage he needed.

The New Steine opened during last summer and has just celebrated its first year in business, most of which has been fully booked. Herve's hotel is a unique experience, appealing to corporate customers and well-heeled overseas visitors.

Herve sees the hotel as an extension of his own personality. He says:

The hotel is like my own home. We have developed a boutique hotel using original artwork to create a different theme on each floor. We have introduced touches from home, with French cooking, and we aim to offer a very personal service and information about Brighton, so everyone enjoys their stay.

Now Herve is planning to expand his business and is actively looking for property to set up a second hotel. And when he finds the right property, he intends to turn to Abbey business to help him turn his dreams into reality again.