Interview with Mr. and Mrs. Magnier Arnaud and Cécile.
You are a couple with 2 children, you bought the business of the 22-room 3* Hôtel-Restaurant La Bastide de Sanilhac in Ardèche on 01/07/2019 through the GRAVITAO agency, and yet you were originally looking for a campsite... Thank you for taking the time to share your experience with us, to help others on this life-changing journey.
How did you go about changing careers? How long did it take?
In practical terms, our conversion process took about 6 months. First, we were thinking of buying a campsite. We consulted several agencies, including GRAVITAO.
There's a lot of business on the market, it was difficult to make a selection, and you understood our request by sending us several files of campsites for sale, specifically in line with what we wanted. This preparatory work, from a distance, was very important.
Our first filter criteria were based on sales, profitability and consistency with our personal contribution. Then, within this selection, we naturally took into account our sensitivities to the region and our personal tastes.
Have you visited many campsites?
This important upstream selection enabled us to limit travel and we visited 3 campsites. We decided on a site in the Lubéron, but the owner eventually withdrew for personal reasons.
We took a step back at that point, re-examining the various elements involved.
What were the decisive factors that led you to reorient your search towards the purchase of a hotel?
We initially considered that, with a capital contribution of less than 300 k€, we would be better off buying the business on its own, as it would be more affordable.
However, we have found that when it comes to selling campsites, there are more businesses for sale in the "Walls and Funds" category that are, in fact, out of budget..
There seemed to be more opportunities in the hotel sector, and in any case there were several businesses that met our financial criteria. What's more, we noticed that company accommodation was more common in hotels than in campsites.
That's how our orientation changed.
If you had to make that choice again today, would you confirm it, or what changes would you make?
Yes, completely, I'd make exactly the same analyses and choices. It seems to me that I would add even more precise attention to the technical aspects of the work tool. But it's very difficult, and you only discover the details when you're already there.
With today's experience, I'd have a sharper eye for a future acquisition. (M. Magnier)
La Bastide de Sanilhac is a Hotel-Restaurant; however, you had no previous experience in the restaurant business. Your background is in banking and insurance. Was it difficult for you to get to grips with the restaurant business?
Was it difficult to convince our banking partners?
What were your arguments?
The catering side of things is very positive in that it generates an interesting activity that revives a certain routine that, in our opinion, the purely "hotel" side of things would present.
The hard part is finding qualified staff. Careful recruitment is essential. We've had a bit of a trial-and-error approach to this. We recruit seasonal positions for 6 months, as the hotel is closed during the winter season.
We've made sure that we're versatile enough to take charge of every job in the business; in this way, it's easier to manage our team, and also to make up for an absence or a one-off surge of activity at a particular post.
We appreciated the screening of applications by Pôle Emploi. And today we have a good team in place.
We have taken the precaution of taking on 2 cooks, a chef and a second, so that if one fails, we can rely on the other.
It should be pointed out that we have retained full control over menu creation, with the cook being consulted on implementation, but it is we who draw up the menu. We manage purchasing, suppliers, prices and margins.
- The cooks cook and I supervise! (M. Magnier)
Our lack of expertise in catering was not an obstacle for the banks, as our progress plan was built in two stages. Firstly, we modelled our business on that of our predecessors, and then implemented changes based on our findings.
What's more, the proportion of "restaurant" sales is relatively modest, accounting for just 20% of overall revenues, as the restaurant is only open in the evenings.
You've now been running this establishment for almost two years. How would you describe your start-up experience?
What were the pleasant surprises? What were the more complicated issues?
How do you compare with your forecast?
We're very satisfied with the results of this early phase of business. We have met and even exceeded our forecasts and have been able to reinvest around €100k in improvements. And this despite the health context of Covid 19 in 2020.
Everything about the business is very positive.
The area is very touristy, the bastide is very beautiful, it's a pleasure.
The only downside would be on a family level, as our geographical location is a little far from the centers of interest for our teenage children, especially out of season.
You operate a business with a commercial lease. You've made some changes to the business premises, particularly to the staff accommodation. What was your relationship with the owner of the premises in this respect?
We have a very good relationship with the landowners. They have understood our needs and directions. We redeveloped storage premises into a beautiful company apartment, and on the other hand we transformed the previous private premises into two family rooms which we are now marketing.
Each transformation was explained to the owners beforehand, and we systematically obtained their written agreement to carry out the work, as stipulated in the lease.
We now feel comfortable in our workplace, and in our private sphere.
You started your business and were quickly confronted with the complex health situation we're currently experiencing. How did you manage this unforeseen situation? What adaptations did you make?
We adapted to this unprecedented situation, drawing on the recommendations of professional bodies such as the UMIH (Union des métiers et des industries de l'hôtellerie) and the specialist press. We set up signage and protocols. There were constraints, and we dealt with them.
For example, we reorganized the evening catering service into two services, one at 7pm and the other at 8pm, to reduce the number of guests in the room at the same time. And we found that this approach was much easier to manage.
In the end, health constraints enabled us to find some interesting solutions from an organizational point of view, which we may keep for the future.
What's your outlook for the 2021 season?
We're optimistic for the 2021 season, firstly because we can start the season a month earlier than last season, and also because we're seeing our booking schedule in very reassuring percentages of around 70% in July-August, even though we're only in May.
I won't hide from you the fact that we'd like to "do a normal season", because the first year we took over the hotel on July 1, with all the adjustments that implies, the second year it was the surprise of the sanitary constraints, and this year they're still there. There's a certain weariness, we're looking forward to a normal situation indeed...
Do you have a message for all those who, like you, are in the research phase?
- Come and buy the Bastide! (Laughter)
To all those who are in this research or preparation phase, we would say:
- asking too many questions leads to doing nothing...
- Dare to keep your eyes open!
It's an exciting job, I love it! I would do it again! (M. Magnier)
Anything else? Any other projects?
Yes, in a few years' time we'd like to get back to work on another project, to find something interesting to develop.
It's a very diversified job where you have to be versatile, but you learn very quickly, you don't need any special skills, you just need logic and common sense!
Welcome to Bastide de Sanilhac!
Many thanks to this charming family, who know how to combine optimism and realism - the qualities of any good entrepreneur... It was a real pleasure to accompany you on this acquisition, and it's an equally genuine pleasure to see you blossoming!
Keep up the good work!