Albert Cottage Hotel in East Cowes is set to go under the hammer next month, offering buyers the opportunity to acquire a historic Isle of Wight hotel property with Royal connections.
Formerly part of Queen Victoria’s Osborne Estate, the Grade II listed freehold property extends to approximately 11,358 sq ft and sits within around 2.8 acres of mature, secluded grounds.
The Albert Cottage Hotel is an established hospitality business, providing 10 en-suite guest bedrooms alongside reception and lounge areas, restaurant and bar facilities, and an attractive garden terrace.
Steeped in royal history, Albert Cottage was purchased by Prince Albert in 1852 as part of a planned Botanic Garden development within the Osborne House Estate. Together with the neighbouring Osborne Cottage, it was used to accommodate Royal guests visiting the estate. In 1899, a covered corridor was constructed to link the two buildings, allowing guests to move between them while sheltered from the elements. Today, this historic feature connects the main hotel with the Consort Restaurant & Bar.
Rich in heritage and character, the hotel retains a number of notable period features, alongside extensive landscaped gardens, terraces and parking for approximately 50 vehicles.
The estate also includes the detached 2-bedroom Indian Summer House, extending to approximately 732 sq ft, which is currently operated as a holiday let.
The hotel investment opportunity is to be offered with a guide price of £950,000 on the instructions of Daniel Hardy & Stephen Skinner of Sanderson Weatherall LLP as joint fixed charge receivers.
It was only 18 months ago that the hotel was for sale with a guide price of £2.25million.
The sale particulars of the forthcoming auction reveal that the freehold is being sold subject to an existing lease to Beau Monde Limited, which runs until 1st May 2031. The tenant currently benefits from a rent-free period until 1st May 2029 in return for carrying out and funding at least £300,000 of refurbishment and upgrading works. From 2nd May 2029, rent is due at £60,000 per year or the open market rental value, whichever is higher.
Beau Monde Limited is currently facing 2 charges relating to its alleged failure to provide financial security to HM Revenue & Customs. The company is accused of failing to provide £42,333 in PAYE security and £33,328.82 in National Insurance Contribution security after being required to do so in September 2025.
No pleas have yet been entered and, at a hearing at the Isle of Wight Magistrates’ Court on 8th July, the case was adjourned after the defendant – Anne Horne – provided documentation and an explanation of the circumstances, including that she had been unwell during the relevant period and had relied upon information from her accountants.
HMRC and the Crown Prosecution Service are now reviewing the case to determine whether the prosecution will continue, with the matter due back before the court on 4th September.
Further information, including the legal pack and details on how to register to bid, is available via Savills Auctions.
