**Document:** DeanWood Hotel Viability Report **Application:** 08/01551/C — Change of use from hotel to private residence **Decision:** Permitted **Decision Date:** 2009-03-05 **Parish:** German **Document Type:** report / planning_statement **Source:** https://planningportal.im/a/86159-dalby-ballacallin-hotel-change-of-use/documents/1557103 --- # DeanWood Hotel Viability Report ## Report ### DeanWood MANAGEMENT LIMITED COMMERCIAL AND RESIDENTIAL PROPERTY 37 VICTORIA STREET
DOUGLAS
ISLE OF MAN
IM1 2LF
TEL: 01624611007
FAX: 01624662125 ### PROPERTY: The Ballacallin Hotel Dalby Isle of Man ### INSTRUCTIONS: Mr S Costain The Ballacallin Hotel Dalby Isle of Man DATE OF INSPECTION: 23rd December 2008 DATE OF REPORT: December 2008 ## Instruction ![A low-resolution photograph showing the exterior facade of a two-story building with large windows and a chimney stack, likely a former hotel.](https://images.planningportal.im/2008/08/473577.jpg) ![A photograph showing the exterior of a large white detached building, likely a former hotel, with a red car parked in the foreground.](https://images.planningportal.im/2008/08/473578.jpg) ![A grainy exterior photograph of a white, multi-story building complex, likely a former hotel, with red cars parked in the foreground.](https://images.planningportal.im/2008/08/473579.jpg) ![A grainy photograph showing a car parked on a driveway or road with a view of the sea in the background.](https://images.planningportal.im/2008/08/473580.jpg) In accordance with the Conditions of Engagement dated 22nd December 2008 and emails dated the 3rd December 2008 and 10th December 2008 undertake an assessment of the market demand for the property in its current condition and viability and practicality of maintaining the buildings current use as a hotel. ### Location The property is situated in the remote rural residential hamlet of Dalby which is approximately 6 miles South of the town of Peel which provides principle services and amenities to the area. ### Description A detached three storey hotel and bar which will have been originally constructed in or around the early 1900's, and has been subject to subsequent extensions. The property benefits from thirteen registered rooms and a two star status. Report \& Valuation: ## Received On ### Accommodation ### Ground Floor Entrance Hall, Principle Bar: Residents Bar: Dining Room: Wash Room: Still Room: Kitchen: Cellar: Ladies and Gents W.C.s Entrance Hall, Principle Bar: Residents Bar: Dining Room: Wash Room: Still Room: Kitchen: Cellar: Ladies and Gents W.C.s ### Basement Office: 158 sq ft approx NIA ### First Floor 5 En Suite Bedrooms with a two bedroom En Suite Room. ### Second Floor 6 En Suite Bedrooms with a two bedroom En Suite Room. ### Outside Tar Macadamed vehicular hard standing to the front of the property and undeveloped garden area to the flank. GROSS EXTERNAL FLOOR AREA 6362 sq ft ![A grainy photograph showing the upper facade and roofline of a white building with dormer windows, viewed from behind a lower dark roof structure.](https://images.planningportal.im/2008/08/473581.jpg) ## Construction Walls: Smooth and un-rendered solid stone and solid brick walls ranging from to thickness. Roof: A pitched conventional purlin and rafter frame to the main clad with natural slate. The flank extension is flat and clad with mineral felt, rear clad with asbestos tile and sheeting. Windows: Velux and PVC double glazed with original single glazed units. Floors: These are predominately suspended timber construction. ### Rainwater Goods: PVC. Stack: Smooth rendered solid brick flashed with lead. ### TENURE: Freehold with vacant possession. ### Services Mains drainage, water and electricity are connected to the premises. Central heating and hot water is provided by an oil fired boiler serving steel paneled and finned radiators to all rooms. A full fire alarm system has been incorporated throughout the property incorporating heat detectors, smoke detectors, sounders and glass breaks. ### Condition The property is in fair condition for the its type and age and has benefitted from significant internal refurbishment to the guest bedrooms over the past 5-6 years in the form of joinery, plastering, wiring, fittings etc. The property however does require extensive external maintenance and refurbishment to the reception areas and kitchen and the following was noted during the course of our inspection:- 1) Deterioration and decay to original external softwood joinery. 2) External re-decoration is required. 3) Original pitched asbestos tiled roofs will be reaching the end of their economic life and replacement will be required. (Specialist advice is required as this is a hazardous material). 4) The Bar and Dining area requires refurbishment. 5) The Kitchen requires refurbishment. 6) Minor areas of sporadic dampness to upper floor stacks and valleys. 7) The odd damaged roof tile and slate. Report & Valuation: The Ballacallin Hotel, Dalby, Isle of Man * This is not intended to be an exhaustive list of defects inspection was limited by the close carpeting and general furnishings. * We would point out we have not carried out a structural survey, nor examined any part of the structure which is unexposed or inaccessible, nor have we tested any of the services provided such as the electrical, plumbing, heating or drainage systems and we cannot comment on the condition thereof, nor the effect such condition may have on the present day market value of the property. GENERAL The Ballacallin has been an established hotel for in excess of 50 years, however it is a destination address always deriving any benefits in the past from its rural/remote location. The Hotel derives income from three primary sources of income in the form of occupancy, restaurant/dining and wet sales/public licence. We do acknowledge the premises also have the potential for functions but do not believe it could provide a major source of income. The property is in a unique and attractive location. VIABILITY The Hamlet of Dalby is not sufficient in size to sustain a public bar in high or low season 7 days a week neither does it benefit from being located on a through route to generate any passing trade. In general the market for out of town public houses has declined over the past 10-15 years which is clearly illustrated by the closure of the Tholt E Will, the Half Way House and the conversion of the Highlander and Railway Public Houses to restaurants. I do not believe the Creg- Ny- Baa would still be viable if it was not for TT Week and being located upon a main arterial route combined with the restaurant. It is generally accepted over recent years the "On licence" trade is regressing especially in remote areas due to perception and consequences of drink driving combined with the cost of "Off licence" sales compared with "On licence" encouraging customers to stay at home. The restaurant aspect of the building usually has a proportionate relationship with on licence/wet sales of which good examples are the Hawthorn, Colby Glen and Creg- Ny-Baa however the premises are located on thoroughfares or have a significant population base. The majority population base of Peel has an increased choice in the form of the refurbished Glen Helen and Highwayman. The Waterfall, Glen Maye also benefits from a more immediate proximity to Peel. The residential rooms as previously stated are well furbished and presented, however having regard to the location it must purely rely upon summer season tourism and the likelihood of obtaining business trade in winter or summer is extremely remote. RECEIVED 04 -6- Report & Valuation: The Ballacallin Hotel, Dalby, Isle of Man The Ballacallin Hotel, Dalby, Isle of Man It is generally accepted from Treasury statistics that visitors in paid accommodation has decreased in the region of 40% over the past 10 years if the centenary TT is excluded. There is a potential having regard to the strong Euro it may encourage a greater proportion of UK visitors however this may be negated by economic regression and the cost of air and sea fares. MARKETABILITY We are currently marketing "The Waterfall, Glen Maye", The Travel Lodge, Loch Promenade and even having regard to the seasonal inactivity there is a distinct lack of enquiries in this section of the market which relies for its income upon the general public's disposable income. The economic pointers do not indicate an increase or expansion in the leisure industry in the immediate future. The Waterfall has been marketed by DeanWood for in excess of 6 months and has only generated 4 viewings clearly illustrating a lack of demand especially when the Waterfall benefits from an established trade, larger population base and closer proximity to Peel in contrast to the Ballacallin. The market will be weak with very limited demand. PLANNING We have not been instructed to undertake any planning searches and therefore for the purpose of this opinion we have assumed the use is that of a Hotel. * We reserve the right to revise our opinion of value upon presentation of documentation to the contrary. CONTAMINATION There is no contaminated land register on the Isle of Man. We are not aware of any contaminated land nearby. Our enquiries have not revealed any contamination affecting the property or neighboring properties, which would affect our valuation. However, should it be established subsequently that contamination exists around the neighboring land, or the premises have been or are being put to any contaminated use, this would reduce our values as reported. If subsequent investigations reveal contaminated land and a quantified cost of money through terms of dealing with the contamination are presented, we would be prepared to provide a revised valuation figure. ACCOUNTS We have not yet been provided with the immediate 3 years accounts however we would request a proprietors wage and rental for the whole building are included and taken into account to provide a true and fair reflection. Report & Valuation: The Ballacallin Hotel, Dalby, Isle of Man I would point out no reasonable businessman would cease trading if there was a profit to be obtained or generated. In addition as a Valuer, Chartered Surveyor and Estate Agent if I believed my client's business did have a ready demand as a hotel I would be encouraging him to sell or immediately introducing a potential purchaser. VALUATION We are of the opinion that the current market valuation for the subject premises would be in the region of £400,000 (Four hundred thousand pounds). 1. The property complies with planning and building regulation requirements. 2. The property is Freehold with vacant possession. 3. If sold on the open market it would be on a willing buyer and willing seller basis. 4. There would be a reasonable period in which to negotiate a sale, taking into account the nature of the property and the state of the market. 5. That a more detailed inspection would not uncover any further defects. 6. No other alternative uses apart from a hotel are available. We trust this is sufficient for your needs but should you require any further clarification please do not hesitate to contact me at the above address. Yours sincerely Charles C Garside MRICS A. Land Inst. DeanWood Management Limited RECEIVED 04 *Any of Local Governors *No The Environment --- *Data sourced from the Isle of Man public planning register under the [Isle of Man Open Government Licence](https://www.gov.im/about-this-site/open-government-licence/).* *Canonical page: https://planningportal.im/a/86159-dalby-ballacallin-hotel-change-of-use/documents/1557103*