Best Practice - Case Study: St Cuthbert's House

Case Study: St Cuthbert’s House Facing challenges associated with converting a listed building into holiday accommodation with no previous experience in the hospitality industry, St Cuthbert’s House quickly became a multi-award winning business.

Best Practice

visit coastaltourismacademy.co.uk

NCTA

St Cuthbert’s House Facing challenges associated with converting a listed building into holiday accommodation with no previous experience in the hospitality industry, St Cuthbert’s House quickly became a multi-award winning business.

Setting the scene St Cuthbert’s House is a multiaward winning bed and breakfast establishment situated in a unique and beautiful setting in Seahouses, on the Northumberland coast. Acquired by accident in the process of purchasing a family home, this luxury, 6 roomed B&B boasts high occupancy levels, with an average of 90% occupancy between March - June 2015 and achieved 100% occupancy in August 2014.

Rated five-star by nearly 500 reviewers on TripAdvisor, St Cuthbert’s House targets the high-end of the market and aims to deliver a first class experience that is centred on the needs of its guests, whilst supporting the long-term sustainability of the business and local community as a whole.

Faced by challenges associated with converting a listed building into holiday accommodation;

starting a B&B with no previous experience in the hospitality industry; finding the time to take a step back from the business and rest; and coping with seasonality by extending its offer into the winter months, St Cuthbert’s House has turned an accidental encounter into a thriving tourism business that places welcome, home hospitality and community at its very heart.

2

Case Study: St Cuthbert’s House

Background 17 years ago Jeff Sutheran and his family came to settle on the Northumberland coast, motivated by the desire for a career change, new scenery and a steadier pace of life.

When searching for their family home, Jeff and his wife Jill came across St Cuthbert’s House which was built in 1810 as a Presbyterian Church. When the church closed its doors the building and the adjoining manse were put up for sale.

After viewing the manse, the couple fell in love with the property and made an offer of the asking price immediately, not realising that in doing so they were also taking responsibility for a derelict and dilapidated listed church building. On reflection, Jeff finds it hard to believe that they nearly pulled out of the purchase altogether, because here they were looking to

3

simplify their lives and they were now about to take on the responsibility of a run down, listed building. Having learnt that the best things in life happen completely unforeseen or by accident, the couple went ahead with their purchase and set about renovating the manse as their family home.

For 7 years the church remained untouched, before the the family fully recognised that they were in a beautiful prime location in terms of potential for a tourism business and they had a building that could be spectacular if they invested in it. So, despite never having worked in the hospitality sector before and not initially setting out to own a hospitality business, Jeff and Jill took the decision to re-design and renovate the church, bringing it back to life in its new incarnation as bed and breakfast accommodation.

visit coastaltourismacademy.co.uk

“It seems strange to reflect now that we almost pulled out of the purchase because responsibility for a listed building was not what we were looking for.”

NCTA

Approach EXPLOITING GAPS IN THE MARKET Recognising there was a gap in the market for high-end accommodation locally, St Cuthbert’s House aimed to offer something that was unique and beautiful. Offering more than just adequate or run-of-the-mill establishments, the business looked to attract clientele that were making their decisions not primarily based on price, but quality and discernment.

COMMITTED TO COMMUNITY Through St Cuthbert’s House the owners wanted to communicate their heart and passion for the area, ensuring that their guests added something to the community, rather than sucking the life out it, which they believed could sometimes be the result of tourism. The B&B explains clearly to guests in its information book that it wants their visit to Northumberland to make a positive contribution to the area and by spending money and taking produce home with them, they are enabling local businesses to survive and prosper.

To help raise the profile of the business and support the community both locally and regionally, St Cuthbert’s House has sponsored a young player at Newcastle Falcons rugby union club. A win win for both sides, this provides a positive contribution to the club and means that those with a disposable income on Tyneside get to hear about the B&B – the owners also get to indulge their own passion for rugby.

“We are deeply rooted here, our children have grown up here, this is our home and we wanted our business to make a positive contribution to the rural, local community that we are part of.”

4

Case Study: St Cuthbert’s House

RETAINING A SENSE OF WELCOME AND HOSPITALITY An important business ethos for St Cuthbert’s House is to treat people with respect and dignity and recognise that the most valuable thing you can give anybody is the gift of time. The owners try to make themselves available to guests, if that is what they want, they greet every new arrival with a cup of tea and have become adept at reading whether they want to stay and chat, or if they would prefer to be left alone. As a result of this very genuine welcome and hospitality, Jeff cites some special encounters with guests who are emotionally moved by Northumberland, its peace and tranquillity and by St Cuthbert’s House itself as a place of welcome firstly as a church for 200 years and now as a place to stay on holiday.

The owners recognise their brand of home hospitality is the reason they benefit from so many positive reviews on TripAdvisor - they are not engineering something or making something false, they are welcoming people whole heartedly, demonstrating why they are doing what they do and inviting guests to come and share it with them.

SOURCING PRODUCTS LOCALLY Linked to its dedication to support the local community and enable the business to deliver on its promise of quality products andmake it stand out from the competition, St Cuthbert’s House is committed to sourcing local produce. It only sells local products in its bar, all the beers come from local breweries, the gin is from Durham and even the soft drinks are made by Fentimans, a Northumberland company.

Through its local connections, the business has developed a synergy with The Durham Brewery, an award-winning family firm with a similar ethos to St Cuthbert’s House. The Durham Brewery uses the St Cuthbert’s cross on its branding because St Cuthbert was buried at Durham Cathedral. After 5

supplying the B&B with beer for its bar for many years, they agreed to label the bottles they sent with St Cuthbert’s House branding, a move which saw the number of beers sold to guests increase from 6 a week to 4 times that amount.

For the B&B, buying products locally is a ‘no brainer’ and they are supported by a network of suppliers who also share their passion – shining beacons who want to boost the local economy and are motivated by providing for local businesses. The owners admit that it would be easier sometimes to approach national companies because they are generally better trained to respond to customers, whereas the service from some local suppliers can be lacking. The B&B sticks with them in spite of this, rather than because of their commitment to deliver the best. visit coastaltourismacademy.co.uk

“We have had situations where people have told us their life story and they breakdown in tears – that doesn’t happen in an ordinary B&B situation – it’s the measure of the depth and integrity in which we try to receive people.”

“One of the things we want is for local businesses to continue to thrive so there is employment, prosperity, families, schools and a library – that only happens if we are prepared to support each other.”

NCTA

MAKING THE MOST OF POSITIVE REVIEWS Regardless of mixed views from peers, TripAdvisor is very important for business and St Cuthbert’s House continually reminds visitors on check out to review their stay. In response, the owners ensure they answer every single comment, good or bad.

“If that person was sitting in my lounge and made a nice comment about their stay I would answer them, so why wouldn’t I do it online too.”

SUPPORTING AND LEARNING FROM OTHERS Committed to building the local business community, St Cuthbert’s House owner Jeff, became chair of the local Tourism Association and is passionate about getting people to see the benefits of working together. Instead of being defensive or secretive about their ideas, Jeff encourages organisations to share and learn from others, with the understanding that the better the visitor offer and experience in Northumberland as a whole, the stronger the prospect for each individual business.

BALANCING THE BOOKS From the outset St Cuthbert’s House knew how much it was borrowing and in turn what that would cost; it understood how much business it needed to generate in order to service that debt and make a living for the owners. The owners also identified the desired occupancy rate for the prices charged.

By pitching at the high-end of the market and differentiating its offer, the B&B hit its targets in year one, despite the recession. St Cuthbert’s House was successfully attracting predominantly mature guests who were retired or semi-retired and still had disposable incomes, which they were spending on places where they were comfortable, choosing quality over price. At first the business did not recognise this driver and in year one priced its double rooms at £80 per night, the

same as the neighbouring competition. By looking more closely at the motivations of its guests, St Cuthbert’s House has since been able to steadily increase its prices, whilst its neighbour remains at the same rate. Recognising that it had to turn more people away then it could accommodate, the B&B was able to act on supply and demand, raising the price of its double rooms to £120 per night which is near the top-end of the market.

“People say they get a better service here then they do at a hotel, we are not expensive if you compare us to a hotel.”

6

Case Study: St Cuthbert’s House

USING AWARDS TO YOUR ADVANTAGE The B&B opened in May 2008, the same month that the media predicted a global financial breakdown. Despite this, and with substantial loans associated with the cost of stripping back a derelict property to its stone shell and earth floor to create a new building inside the church, St Cuthbert’s House recognised early on the need to raise its profile and saw entering awards as a way of achieving this.

In its first year of opening the B&B entered the North East England Tourism Awards, wining bronze and as a result gained coverage in a regional newspaper. To the business this cost nothing, other than the time it took to fill out the award application form. In return it achieved a half-page spread that it could not have otherwise purchased. Motivated by this success, the business has made the awards process a pillar of its marketing, consciously applying for accolades and enjoying exposure in publications such as the Daily Telegraph.

In addition, St Cuthbert’s House recognises that the process of completing awards entries is fantastic for making sure it stays ahead of the game. The owners make a point of visiting other businesses that have won awards in categories they themselves have been finalists in and return this favour too. By doing this, they are constantly learning and picking up new ideas from the best of the best, nuggets they can adapt for their own context.

“There is no doubt the awards’ process has been a driver for us to keep improving and developing our own business.”

7

SOMETIMES YOU JUST GET LUCKY On the one hand, St Cuthbert’s House admits to spending money in particular platforms such as print advertising and never seeing a return, on the other hand however, it has been lucky enough to reap the rewards of media coverage that were not actively sought. In 2009 the B&B enjoyed 4 minutes of air time on BBC’s Songs of Praise, after presenter Aled Jones came to stay whilst filming along the Northumberland coastline.

On a separate occasion, BBC presenter Clare Balding was a surprise guest after her agency booked a room at St Cuthbert’s House while she walked the St Oswald’s Way for her radio programme. Thinking nothing more of the encounter, a year or so later the B&B started getting reservations that cited Clare Balding as the reason for their enquiry. It turned out that Clare had mentioned St Cuthbert’s House in her new book Walking Home and said it had gone to the top of her list of B&B’s in the UK. The business recorded dozens of bookings as a result of this unprompted publicity.

“I once helped a stranded cyclist who was researching cycle routes, showing him my favourite circuit around the local area. Months later this was turned into a full-page spread in The Observer with a mention for St Cuthbert’s House – you cannot predict these things.”

visit coastaltourismacademy.co.uk

NCTA

Results 90% Occupancy has significantly increased and averaged over 90% in March, April, May and June 2015

100%

Occupancy!! in August 2014

on

5 star TripAdvisor reviews

CONGRATULATIONS!!

Multi-award winning B&B

3

500

2

Members of staff employed from the local community

Repeat visitor levels are high, with some guests staying 3 times a year!

8

Case Study: St Cuthbert’s House

Challenges and lessons learnt ARE YOU THE RIGHT PERSON FOR THE JOB? Advice from the owners: The hospitality industry is hard work, it is important to identify early on whether you are someone that is motivated by providing a good service and welcome to people, and if you are able to cope with the pressures this brings. Don’t enter the industry in the first place unless you are sure this is what makes you tick, coming into it just for the money will not make for a happy lifestyle. For St Cuthbert’s House, although the owners had not been in the hospitality business before, hospitality was nevertheless a way of life for them. Coming from a large family, traditionally Jeff and Jill always had people coming to stay and althoughoriginally they didn’t earn any money from it as a professional operation, hospitality was who they were and creating a business that suited their hearts inclination seemed like a good plan.

“Be prepared to work hard and really evaluate whether you are the kind of person that enjoys hospitality before you take the plunge.”

TAKING TIME OUT TO REST AND RECUPERATE By their own admission, St Cuthbert’s House owners Jeff and Jill learnt the hard way that taking time out to rest and recuperate is essential for business, especially for maintaining a positive welcome for every guest.

In the beginning, after two or three years of non-stop working, the couple recognised they had reached near breaking-point and their own relationship had started to suffer as a result. The demands of the business were strong and Jeff and Jill had not been fully prepared for what was involved in giving each guest the memorable experience they had set out to achieve. By investing so much time and emotional energy in people, they themselves were running on empty and realised that they needed to redress this balance to stay healthy and rediscover the reasons they established the business in the first place. The winter has become a time to rest and recharge, so that the couple can give their all during the busy season.

“As we have matured we have seen that the rhythm of life requires us to take good rest and we have seen the winter as an opportunity to do this.”

9

visit coastaltourismacademy.co.uk

NCTA

ADAPTING THE OFFER TO THE CHANGING SEASONS

LOOKING FOR OPPORTUNITIES IN EVERY SITUATION

Although the winter has become a time for rest at St Cuthbert’s House, instead of closing the business completely, the owners began to think creatively about what they were passionate about and what they would enjoy helping guests to discover during the winter months. From this was born the Northumberland Heritage Weekend which encourages people to come and learn about the history of the area. Seeing success in this product, St Cuthbert’s House brought in a professional photographer, extending its winter time offer to guests who were interested in photography and wanted to make the most of the winter light and relatively late sun rises.

St Cuthbert’s House faced challenges associated with converting the physical building into a B&B, such as gaining planning permission, securing funding and keeping the project on track with regards to finance and timetable. During this process however, St Cuthbert’s House came into contact with Triodos Bank, who not only provided a loan to the business, but became a valuable partner and continues to promote the B&B to its customers who have a keen interest in responsible holidays.

Giving people a reason to visit in the winter when they wouldn’t normally, means St Cuthbert’s House is busy for a week or so during this period and then the owners can take the rest of the month as their holiday, maintaining the sustainability of the business. The only downside and something that the B&B is acutely aware of, is that it is unable to provide year-round employment for its two members of staff. As long as Jeff and Jill remain the focus of the business, they feel they cannot take a hands-off approach, and still offer the same level of heart, home and hospitality.

10

Case Study: St Cuthbert’s House

Top tips 1.

2.

3.

4.

5.

11

Pay attention to the detail - by taking care of the little things you cannot help but address the big things as well and this is what will keep you on top of your game.

Be prepared to work hard - but also remember to take breaks when you can to ensure you are continually refreshed.

Maximise your occupancy potential by using tools such as Booking.com to your advantage - for example you don’t need to have all of your bedroom stock listed, just a few single room nights.

It’s a crowded market place you must differentiate yourself somehow - focus on something you are passionate about or what motivates you and find a way to make this part of your business.

Recognise the benefits of working together with businesses in your area and beyond - do not be defensive about your ideas; teaming up, sharing knowledge and learning from others will help to improve the visitor offer and experience in your area as a whole and that can only be good for business.

visit coastaltourismacademy.co.uk

FOR MORE INFORMATION ON ST. CUTHBERT’S HOUSE Contact: Jeff Sutheran Email: jeff@stcuthbertshouse.com Website: www.stcuthbertshouse.com

Connect with the NCTA linkedin.com/company/national-coastal-tourism-academy facebook.com/nationalcoastaltourismacademy twitter.com/nctacademy 12

visit coastaltourismacademy.co.uk