Palace Terrace, Queens Promenade, Douglas, Isle Of Man
Asking price: £580,000

Commanding an enviable position on Queens Promenade, Silvercraigs is a substantial terraced hotel with uninterrupted sea views across Douglas Bay and is only a short, level walk from the city centre. It presents a compelling opportunity for investors and developers seeking a landmark coastal property in one of Douglas’s most desirable locations.

Arranged over seven floors, the building was formerly operated as a hotel and provides a total of 28 ensuite guest bedrooms, all served by a lift. The upper floors are dedicated to guest accommodation and offer a versatile mix of room types, including sea view triples, twins and singles, alongside well-proportioned doubles and larger twin rooms to the rear. Many of the front facing rooms benefit from far reaching views across the bay, an aspect that has consistently appealed to both short and long term guests. Although the lift is currently out of service and will require repair, the overall layout remains practical and adaptable for a variety of future uses.

The ground floor establishes an impressive first impression, featuring an elegant sea view lounge, reception area, bar and dining room, supported by WCs, a small kitchen and a bain marie. The lower ground floor provides extensive additional space, including a large main kitchen with dumb waiter access, further lounge accommodation, a sizeable bedroom with ensuite, office, and an additional bedroom or study. There is also substantial pantry storage, along with dedicated areas for fridges, freezers, hot water cylinders and laundry facilities. To the rear, a yard houses the oil boiler and dryer, along with a utility space fitted with folding timber garage doors and a well-maintained fire escape.

From a construction and efficiency standpoint, the property benefits from a high level of insulation. Most guest rooms are fitted with 40mm argon-filled triple glazing, with the remainder double glazed, complemented by well-insulated floors and roof space. This provides a strong foundation for refurbishment and upgrading, helping to reduce long-term energy costs once modernisation is complete.

The property also offers significant development potential. Planning permission was granted in 2003 for conversion into six apartments, demonstrating clear precedent for residential redevelopment. There is further scope for alternative uses, such as apartments or an HMO, subject to the necessary consents. Its generous scale, existing bedroom configuration and services, and prime promenade position combine to create an attractive proposition for a range of future schemes.

The hotel has been closed for three years and is not currently operational, and the interior now requires refurbishment throughout. This is reflected in the vendor’s position, as the sale is driven by retirement and a desire for a swift transaction within a defined timeframe. Pricing is therefore intended to be competitive and realistic, offering a rare opportunity to acquire a substantial seafront property with exceptional views, scale and redevelopment potential in the heart of Douglas.