An Aberystwyth-based entrepreneur has acquired a local guest house after securing a £160,000 loan from the Development Bank of Wales.
Stuart Stephens has added Sunnymead Guest House on Bridge Street in Aberystwyth to his portfolio of local leisure and hospitality businesses which includes Bar 46.
The five bedroom guest house, which is currently being refurbished, was previously owned by hoteliers Janet and Windsor Morgan who are retiring after 26 years running the business.
There is also a separate three bedroom property to the rented out as self-contained accommodation.
Mr Stephens said he plans to continue the legacy left by the previous owners and align the hotel with his other businesses going forward.
Mr Stephens said: "I know how hard Janet and Windsor have worked to build a great reputation for Sunnymead so I was keen to ensure that the business could continue to thrive after their retirement, particularly as it provided much needed accommodation for local workers and tourists and is so close to Bar 46."
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"The support of Matt Godfrey at Cornerstone Commercial Finance and Emily Jones at the Development Bank of Wales means that I now have a business plan and the capital required to acquire the business and make the investment needed to ensure long-term success."
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Mr Godfrey, commercial manager at Cornerstone Commercial Finance who advised on the loan, said: "We are delighted to have secured Stuart the funding needed to add Sunnymead to his growing portfolio in Aberystwyth. Emily’s expert support on the projections meant we could ensure Stuart met the affordability criteria and obtained the appropriate funding structure."
He added: "As a result, Stuart benefits from interest-only repayments for the first six months while establishing and growing his consumer base. This deal was a great one for our client and the town’s tourism sector, and we’re looking forward to seeing the finished result."
Ms Jones, assistant investment executive at the Development Bank of Wales, said: "As a family run guest house in the thriving community of Aberystwyth, we are pleased to have supported Stuart with the purchase of Sunnymead."
She added: "The finance from the Wales Business Fund means that the business can continue to trade successfully, therefore retaining employment for local people and providing much-needed accommodation for visitors and tourists alike as well as medical staff who require short-term accommodation when working at the hospital."
The £204 million Wales Business Fund is financed by the European Regional Development Fund, the Welsh Government and the Development Bank of Wales.
Loans, mezzanine finance, and equity investments are available for deals between £50,000 and £2 million with terms ranging from one to seven years for small and medium-sized businesses (those with fewer than 250 employees) based in Wales, or willing to relocate to Wales.