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Are B&b's The Next Harbinger Of Economic Doom?


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So I'm doing my regular search through Rightmove (Norfolk) and notice the huge number of bed and breakfast properties for sale. There must be at least a dozen in the first 10 pages alone.

My thoughts.

People can't afford to go away any more. A B&B costs at least £40 pp per night plus evening meal and daytime activity.

The houses cost more money to run with additional fixed costs plus insurance, food, staff, advertising etc. At least one owner has to stay there to run it and not go out to a job.

Less people staying means lower revenue and less reason to run a B&B. Huge cumulative difference between costs and income.

Maybe B&B's are a property and wider economic canary?

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Yes.

There's more innovative business models out there. Coming out of the US as usual....

https://www.airbnb.com/annual/

I've use aribnb all the time. Prices are moving upwards, however, as people get greedy. The majority, however, don't charge per person for two guests - which immediately makes them half the price of a regular B&B or cheap hotel. A no-brainer.

I think Formule 1 in France is successful because it charges a flat room price for 1 - 3 people. (Though you need a fairly small child for the upper bunk.) That makes a huge difference to a holiday budget.

I shall miss the traditional English B&B though . . . a choice of grapefruit segments or cornflakes, horribly stewed tea and well-stained mattress if you're curious enough to look.

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Student landlords are also in for it. Often the quality of the lettings is below what most people would accept, Universities have been building halls of residence like crazy and student numbers are falling.

Its almost a perfect storm, all we need to top it off would be rising interest rates and effective enforcement of HMO rules.

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Student landlords are also in for it. Often the quality of the lettings is below what most people would accept, Universities have been building halls of residence like crazy and student numbers are falling.

Its almost a perfect storm, all we need to top it off would be rising interest rates and effective enforcement of HMO rules.

Yes I know! :)

Loving the construction cranes which have just gone up in my Northern town to build new high rise student accomodation! In fact its the only the building project of any great size in town.

:lol::rolleyes::blink:

Lots of "To Let" signs on student houses.

Further more student accom can be rented during holidays.

Edited by Secure Tenant
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B & B's have never appealed to me, a very antiquated concept, staying in someone else's house effectively, plus a 50/50 chance of some snippy woman owner making sure you know you're not really welcome, plus arcane rules and regs you have no way of knowing exist until you breach them.

I may have watched too much Four in a Bed!

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So I'm doing my regular search through Rightmove (Norfolk) and notice the huge number of bed and breakfast properties for sale. There must be at least a dozen in the first 10 pages alone.

My thoughts.

People can't afford to go away any more. A B&B costs at least £40 pp per night plus evening meal and daytime activity.

The houses cost more money to run with additional fixed costs plus insurance, food, staff, advertising etc. At least one owner has to stay there to run it and not go out to a job.

Less people staying means lower revenue and less reason to run a B&B. Huge cumulative difference between costs and income.

Maybe B&B's are a property and wider economic canary?

A lot of B&B's are run by retirement/near retirement couples, so the one owner staying there isn't so relevant.

My guess is that things like the energy costs are hurting people. B&B's are big, so they cost a lot of money to heat. You can of course turn the heating down when people aren't there, but it has to be on at a minimal level to stop the rooms getting nasty and damp.

The costs (in my head) of running a B&B are mainly food and energy. With travel hotel prices getting lower they are probably finding it hard to compete on business terms.

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B&Bs seem to have lost their advantages over the cheaper hotels. Price - much the same. Quality - varies widely. What has become the big difference for me in recent times is when I arrive at a B&B and the proprietor isn't around, so it becomes a big faff to get in. Hence, other things being (relatively) equal I'll take the hotel.

Premier Inns are thriving. Among others!

That's kind-of a side-effect of online booking. Before the days of the 'net I never used to book at all!

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That's kind-of a side-effect of online booking. Before the days of the 'net I never used to book at all!

True, years ago I'd just turn up and look for somewhere. Now you can instantly compare prices online, so you can find good deals much more easily and book in a moment without having to make phone calls.

That said, I'd much rather stay at a good B&B than a cheap hotel, but the good ones are hard to find; I've often stayed at Premier Inns while visiting the UK and they're fine for a bed for the night, but kind of soulless.

In North America, B&Bs seem to be more of an up-market thing for people who don't want to stay at a hotel. They may end up the same in the UK.

Edited by MarkG
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Premier Inns are thriving. Among others!

And there is the reason the B&Bs are closing... we have far more cheap accommodation like premier inns now than 10 years ago.

Like supermarkets putting small shops out of business through economies of scale, the likes of premier inn and travel-lodge have done the same for hotels.

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Location is also important. I can imagine there still being a demand for the quainter pretty properties in tourist hotspots like Lake Ambleside but why would you want to pay a premium for a traditional family bnb in a place like Watford or Milton Keynes when Travelodge and Premier Inn are cheaper and better quality. For those looking for a more authentic experience startups like Airbnb will offer more inventory at a cheaper price. Although Airbnb are no longer chasing the bnb crowd only they are going directly after hotel chains. Part of their secret sauce is convincing you that staying in a bohemian flat in Berlin is a better experience than staying at the local Hilton. The Airbnb business model is not risk free however the traditional British bnb is definitely another industry that is about to get its head served on a plate.

http://thenextweb.com/insider/2013/03/10/the-airbnb-advantage-how-to-avoid-competition-and-become-a-multi-billion-dollar-startup/

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Yes.

There's more innovative business models out there. Coming out of the US as usual....

https://www.airbnb.com/annual/

Used it to go to Germany last month.... for Euro 60 you get absolutely fantastic apartment with 2 spacious rooms and kitchen... beat a typical Euro 100 hotel hands down.... will def be using it now over hotels.com!

The way ownersdirect should have been, but did not become.

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And there is the reason the B&Bs are closing... we have far more cheap accommodation like premier inns now than 10 years ago.

Like supermarkets putting small shops out of business through economies of scale, the likes of premier inn and travel-lodge have done the same for hotels.

Travelodge has been trying to put itself out of business. Get a reputation as the ultimate flea-pit and people will look hard for alternatives.

Whether Premier can keep its high ratings on the review sites remains to be seen (but it must be doing something right - it's too big and well-known to game the system). But it does appear to be raising prices, which is probably preferable to turning flea-pit if they're facing the same pressures that did for Travelodge.

Which says ... there should still be a niche for the independent family-run place. Just maybe a reduced one from the days when only the rich would even think of staying in a hotel.

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I'd only use a B&B in early Spring, while the sheets are still clean...

We stayed at one in Devon - owner was evidently a close relative of Hyacinth Bucket. Frills on everything, and even the frills had frills on. As for cleanliness, I swear that any germs unfortunate enough to get trodden in would have committed mass suicide on the spot.

Premier Inns are great - we've used them a few times. I'm sure it's something to do with the colour scheme - none of that expanse of depressing, grubby looking beige the budget chains often go in for.

Edited by Mrs Bear
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I prefer the sprawling and anonymous nature of a chain hotel. There's something reassuring about being in just one room in a long corridor of several. You can come and go as you please and if you are lucky enough to have female company you feel less self-conscious when playing Pass the Pigs.

I really rate Premier Inn. I stayed at one a few months back for a great price. The room was clean and spacious and the breakfast at the Beefeater next door was excellent. I've heard bad things about Travelodge, including from my parents who overpaid for the central Bath hotel and hated it (I think this was the one in the news a while back for having a pigeon nest under a bed).

I'd only use a B&B if it was a great deal or if there were no alternatives.

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So I'm doing my regular search through Rightmove (Norfolk) and notice the huge number of bed and breakfast properties for sale. There must be at least a dozen in the first 10 pages alone.

My thoughts.

People can't afford to go away any more. A B&B costs at least £40 pp per night plus evening meal and daytime activity.

The houses cost more money to run with additional fixed costs plus insurance, food, staff, advertising etc. At least one owner has to stay there to run it and not go out to a job.

Less people staying means lower revenue and less reason to run a B&B. Huge cumulative difference between costs and income.

Maybe B&B's are a property and wider economic canary?

I would hazzard a guess and say - Great Yarmouth?

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I prefer the sprawling and anonymous nature of a chain hotel. There's something reassuring about being in just one room in a long corridor of several. You can come and go as you please and if you are lucky enough to have female company you feel less self-conscious when playing Pass the Pigs.

I really rate Premier Inn. I stayed at one a few months back for a great price. The room was clean and spacious and the breakfast at the Beefeater next door was excellent. I've heard bad things about Travelodge, including from my parents who overpaid for the central Bath hotel and hated it (I think this was the one in the news a while back for having a pigeon nest under a bed).

I'd only use a B&B if it was a great deal or if there were no alternatives.

I know exactly what you mean, you can have a few beers, have no curfew the list is endless. i try to always stay in a premier Inn where possible, as you know what your going to get, regardless of what town your in. its the sence of familiarity i like.

i used ot stay in a travel lodge when working in basingstoke, 10 years ago. it was a horrible, horrible place. stayed in one in Reading at xmas, again horrible and got stung with the carpark fee.

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I know exactly what you mean, you can have a few beers, have no curfew the list is endless. i try to always stay in a premier Inn where possible, as you know what your going to get, regardless of what town your in. its the sence of familiarity i like.

Do you always eat a McDonalds and always get coffee from Starbucks....

"It's the ubiquity I like" ;)

Surely travel is about experiencing something of the area to which you travel. Fair enough, for business purposes - when you will just be seeing the inside of a few taxis and bland meeting rooms - identikit accommodation could fit the "business need", but for leisure... you're kindof missing the point of travel.

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Do you always eat a McDonalds and always get coffee from Starbucks....

"It's the ubiquity I like" ;)

Surely travel is about experiencing something of the area to which you travel. Fair enough, for business purposes - when you will just be seeing the inside of a few taxis and bland meeting rooms - identikit accommodation could fit the "business need", but for leisure... you're kindof missing the point of travel.

I suspect that most of us wouldn't choose them when actually on holiday - it's often just a q. of needing a bed for the night. We've used them twice when attending family events, and once when Mr B, ahem, had to be at a magistrate's court early because of a speeding ticket.

For that kind of purpose we'd certainly use them again.

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I would hazzard a guess and say - Great Yarmouth?

Some 9,10 and 11 bedrooms properties in Blackpool (ex guest houses) were going mega cheap last time I looked.

Some <£100,000.

Lots for sale as well.

Of course in this context it is location location location.... Same properties in the outer London postcodes would be worth a hell of a lot more.

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Some 9,10 and 11 bedrooms properties in Blackpool (ex guest houses) were going mega cheap last time I looked.

Some <£100,000.

Lots for sale as well.

Of course in this context it is location location location.... Same properties in the outer London postcodes would be worth a hell of a lot more.

Indeed. What's the score with commercial b&b's, can they just be used as residential, i'm thinking they'd need a change of use, but is that just apply for a bit of paper pay a few hundred for the priviledge sort of thing.?

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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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