A £50m investment has helped to change the fortunes of St Michaels in Falmouth, taking it from drab to fab with new facilities, revamped bedrooms and a reinvigorated hunger to be the best boutique in the south west.
Chairman Nigel Carpenter has owned the property since 2001, and said the ‘Faulty Towers’ style property was in dire need of a makeover when he arrived, and a hefty investment to turnaround the business. As part of the deal to fund the expansion, Carpenter sold the freehold for St Michaels to CBRE Global Investors, and leased it back to a new operating company, for which he became 50% shareholder, on a 150-year lease. This move helped to unlock the capital needed to develop the hotel side and core facilities for the resort.
Carpenter then entered into partnership with James Houlston of BH Hotels.
St Michaels Hotel now boasts 84 bedrooms and two new restaurants – Brasserie on the Bay and the Garden Kitchen – and a new destination spa.
Each year since, Carpenter has ensured that all the profits have been invested back into the hotel, and gradually as a result, its reputation, and business levels started to pick up. The first step was to solidify the hotel’s three-star status, then in 2009 St Michaels was awarded four stars, in 2010 the business won Hotel of the Year for Cornwall and went to 2 AA Rosettes.
St Michaels Hotel officially unveiled its new look at the beginning of September. Membership to the health club is already now up at 2,000 – just 500 members off the limit – sales are up 50% up on the previous year and in October the resort was operating between 75-80% occupancy.
St Michaels Hotel
Facilities: Health club, spa and gym, two restaurants, private dining room