The Courier & Advertiser (Perth and Perthshire Edition)
Family-run hotel’ s owners horrified by spiralling costs
The owners of a north-east hotel are at the end of their tether as they try to cope with increasing operational bills, which are continuing to soar.
Husband and wife team Sheila and Mick Howarth of the Belvedere Hotel on Evan Street in Stonehaven took to social media to voice their horror at their gas bill increasing from £450 to £1,457 per month.
Their electricity bill has also increased from £600 to £1,000, and costs of food and drink are also up, with Sheila explaining that some of their suppliers have put costs up various times during the last two to three months.
The main concern for the owners is the lack of customers visiting the venue, which means income is “non-existent” at the moment.
The hotel, which has 11 rooms, was once busy 365 days of the year.
Now, due to the increase in living costs across the board, current restrictions on hospitality, and the pandemic in general, the duo are struggling to come to terms with the costs of operating their business.
Sheila, who is 58, has been running the venue with her husband for the past decade. They work 80 hours each week to keep staff costs down.
She said: “I was with CNG and they went into receivership. Ofgem automatically transfer you to a different supplier and we got put with Positive Energy. My electricity and gas have always been sourced by a broker firm and they look at all the deals for me.
“They came back and said the prices were ridiculous and all about the same – plus, they are about to get worse. I was advised to lock in a deal for the year and I just got a bill in December for £1,457. My average has been about £450.
“I was obviously on quite a good deal before but I’ve gone from paying 3.26p per unit to 7.5p. Positive Energy also charge a standing charge of 50p per day which is around £15 per month – that’s something I wasn’t paying before.
“The costs have gone way up and the income has come way down.”
With her food and drink bills also rocketing, and so many people working from home and cutting back on business travel, the hotel has seen fewer guests, meaning far less being spent by visitors on food and drink, too.
Sheila said this is a result of the restrictions constantly being placed on hospitality and the cost of living going up.
She added: “At Christmas we had 100 cancellations following the announcement to cancel Christmas parties and with the restrictions in place over New Year, that resulted in the fireballs being cancelled and our fully booked hotel reservations for a minimum two night stay go overnight. That was around £2,000 in total.
“I know the government are giving us money, I think around £4,500, but my daughter has a wee coffee shop (Nikki’s Coffee Shop and Bistro) in the town and she gets the same amount as I do. One size does not fit all.
“There’s no end in sight. My breakeven was £260 per day but it is now nearly £500. It is horrific.”