Spiralling costs send the Hog hotel in Suffolk into hibernation
The Hog Hotel on the Suffolk coast has announced it will enter hibernation for the winter months, after spiralling costs and the cost-of-living crisis left its owners facing "projected losses".
The hotel was opened by Nathan Jones – co-founder of contract caterer Harbour & Jones which merged with CH&Co in 2014 - and his wife Sally, in 2019. The couple invested more than £1m to create a boutique 14-bedroom hotel, with the intention of attracting visitors to the less well-trodden areas of the county.
Since opening it has won a Best Small Hotel in the East of England award and received four star accreditation from the AA and two AA Rosettes for its restaurant.
However Nathan said the current trading environment has placed its future into doubt: "Having done the mathematics we would just become busy fools at the expense of supporting employment of staff, paying the government its taxes, lining the utility companies' pockets with these excessive charges whilst trying to support our suppliers. There is nothing in this for us except projected losses, so I am not prepared to continue.
"I'd like to thank all our suppliers who themselves will be in a difficult situation right now as I am sure others will follow us. I would urge all people where they can to support and buy local. Finally, a big thank-you to our team, the people of Pakefield, Lowestoft and our visitors from afar.
"Sally and I shall now turn our focus to new adventures closer to home in London and will reconsider our position and options on the modelling of the property in due course."
From November the hotel's electricity costs had been set to increase from £22,500 per annum to £96,000; with gas due to go up from £7,500 a year to £25,000 from March 2023. Even with government assistance taken into account the hotel's energy costs would have increased by 245% until the end of March 2023, and by more than 300% from April.
Beer prices had also gone up by 7% and wine by 11%, while linen services, food and raw materials had all increased by 15%.
The hotel will close after Sunday lunch service on Sunday 6 November, until Spring next year when the owners will take a view on "whether it is sustainable to reopen". Staff have been paid their notice periods, tips and holiday.
