Case study: Tregarthen’s Hotel, Restaurant & Cottages, Isles of Scilly
One of the Isles of Scilly’s most established hotels has secured funding from The Cumberland Building Society to help future-proof its operations on the main island of St Mary’s.
Credit: Thank you to Tregarthen's for kindly giving us permission to feature the video of their property on our website.
Tregarthen’s Hotel, Restaurant & Cottages will use the funding to enhance its dedicated staff accommodation. The move forms part of a four-year development plan to tackle the challenge faced by island-based hospitality businesses of attracting and retaining seasonal employees.
Based 28 miles off the coast of Cornwall, seasonal hospitality sector employees on the Isles of Scilly require a home.
To expand its operation, Tregarthen’s will first expand its accommodation for the team, initially adding four rooms for staff within the hotel, as well as improving current lodgings.
The project will see well-equipped en-suite facilities built, with some living-quarters designed for couples, that will include upgraded Wi-Fi to help keep them connected with the world beyond St Mary’s.
Rob Baldry, Director at Tregarthen’s, said: “Due to our location, staffing is naturally a challenge and we often look to employ staff from the mainland.
“The main driver is to provide the best quality staff accommodation that we can, as we know happy staff make the hotel a friendly and relaxed place to be.”
With guests increasingly expecting high levels of service, the investment tackles a challenge facing an industry which is vital to the islands’ economy.
Rob added: “In a location where recruitment is costly and retention is fragile, improved living conditions can reduce turnover, lower hiring expenses and create a more committed team.
“By focusing on staff accommodation, we’ve been able to cut recruitment costs by more than half and we are getting people who we know and want to return.
“As a result, we can provide guests with the experience they come for.”
The Isles of Scilly represent Britain’s very own Caribbean-like getaway, where pristine waters, white sands and a slower pace of life create a world apart from the mainland.
An archipelago of over a hundred islands, of which only five are inhabited, the area is a designated Area of Outstanding Natural Beauty.
Accessed via a ferry from Penzance or by plane from Land’s End, Newquay or Exeter, the islands welcome up to 210,000 people to its shores each year, with nearly 70% of the islands’ 2,500 permanent residents employed in the tourism sector. Perched by the water’s edge, just yards from the quay side on St Mary’s, Tregarthen’s offers a base for visitors to experience the natural beauty the island has to offer.
The hotel features 35 en-suite rooms alongside six self-catering cottages and four new lodges, as well as a restaurant serving locally sourced produce.
Offering scenic views of St Mary’s harbour, the hotel provides easy access to island-hopping boat trips, wildlife watching, and the famous Abbey Gardens, filled with subtropical plant life, on the island of Tresco.
Dating back to 1849, Tregarthen’s Hotel boasts a rich history and has welcomed literary figures like Lord Alfred Tennyson as well as royal guests including King Charles III, Queen Camilla, and Queen Elizabeth II.
Rob said: “It’s such a relaxing environment with no rush and no hurry. The Isles of Scilly’s remoteness is its charm, but it’s also a challenge. That’s why we’ve started our development plan to ensure we deliver an experience which sees guests returning year on year.”
As Tregarthen’s sought funding to support the upgrading of its staff accommodation, their broker Lance Anelay from Bespoke Business Finance, recognised an ideal fit with The Cumberland, through his detailed knowledge of the commercial funding marketplace. This was backed up by The Cumberland’s experience in supporting businesses in the Hospitality sector for over 25 years.
The Cumberland supports organisations with our Kinder Banking ethos, which puts people and communities at the heart of our operations. Our work with Tregarthen’s represents an expansion of our portfolio, supporting Hospitality businesses in the most remote areas of the UK.
After visiting the island of St Mary’s, The Cumberland worked closely with Tregarthen’s and Lance at Bespoke Business Finance to develop a funding model which would provide them with flexibility as they looked to grow.
Derek Smith, Commercial Business Development Manager at The Cumberland, said: “Tregarthen’s is a fantastic example of the kind of independent, community-focused hospitality business we’re proud to support.
“Running a hotel on the Isles of Scilly comes with unique challenges, and our aim was to create a funding solution that would give the team the confidence to invest in their people and their future.”
Click here for more information on Tregarthen’s Hotel.
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