Updated, 8 p.m., June 19, 2015
The owners of Sooke Harbour House have added investing partners to expand the restaurant and hotel and pay off an outstanding debt.
Frederique and Sinclair Philip will continue to hold an ownership stake in the internationally renowned waterfront resort at 1528 Whiffen Spit Rd.
They will be working with a new team of investors to roll out $7 million worth of improvements this year and next, Frederique Philip said Friday.
A second restaurant, spa, art gallery, additional rooms, conference and meeting space and a new marketing plan are aimed at driving business by expanding activities and special events at the hotel.
Sooke Harbour House will maintain its high standards of quality, but will offer more choices, Philip said.
The project gets underway as the tourism sector looks forward to a strong season. Bookings by U.S. visitors are up this year from last, Philip said.
The team is lining up an expected $3.5 million in interim financing. It will be used to pay what’s owed to the Business Development Bank of Canada. The bank initiated a foreclosure process in court this week, stating it was owed $2.9 million.
This summer, a new restaurant and bar called the Copper Room is opening in a space now known as the Garden Room, Philip said.
The room is named for the importance given to copper by First Nations.
It will offer lighter fare than the existing dining room, at a lower price point.
The 46-seat restaurant will include craft beer on tap and work with local brewers to offer special dinners.
Each of the 28 guest rooms is being refurbished. Another 24 new guest rooms are being added next year, with work to start in January, Philip said.
Two of the new rooms are to be linked with a new 1,500-square-foot permanent art gallery, to be used for special events as well, she said.
Local artwork, including First Nations art, is an intrinsic part of Sooke Harbour House. “The whole place is a gallery,” said Philip.
Last week, $10,000 worth of art was sold, she said.
A 3,000-square-foot oceanside spa and guest services centre is to be completed by year’s end on the southwest portion of the property, a Sooke Harbour House statement said. A sauna, thermal pools and treatment rooms are among amenities planned.
As well, a new Ocean Club is to be established to offer 100 members their own club room, discounts and room upgrades, and a variety of outdoor activities.
Blueprints have been drawn up for development permit approvals needed from the Sooke municipality, Philip said.
Sooke Harbour House has 45 staff, making it one of the largest employers in the Sooke area.
It has been a trendsetter for its early adoption of locally produced food and supports local farmers. Its idyllic gardens filled with a colourful array of flowers create a romantic settings for the many weddings held there.
Tourism operators have faced tough times in the past as challenges piled up, including the 2008 global economic crisis, uncertainty about passport requirements among Americans and stricter enforcement of drinking and driving rules.
The first four months of this year paints a brighter picture for this season, showing higher occupancy rates among local hotels, a consultant reported this month.
- - -
Earlier story, posted 6 a.m., June 19, 2015
A foreclosure action has been launched against the celebrated Sooke Harbour House by the Business Development Bank of Canada.
The bank states in court documents that it is owed $2.9 million on a 1997 mortgage for the two properties making up Frederique and Sinclair Philip’s picturesque waterfront hotel and restaurant at 1528 Whiffen Spit Rd.
No hearing date has been set.
The property’s total value is $3 million, the bank said in documents filed this week in the Supreme Court of B.C.
Sooke Harbour House is continuing to operate. A hotel spokesman could not be reached on Thursday.
Frank Bourree, tourism consultant and principal at Victoria’s Chemistry Consulting, said: “Frederique and Sinclair are wonderful people and great operators. It is a world-class facility.” The Philips are “major contributors to the social fabric of Sooke and the tourism industry,” Bourree said.
Both the recession and tougher enforcement on drinking-and- driving rules have affected the hospitality sector, said Bourree, who has done work for the Philips in the past.
“They have been putting their lifeblood into this for many years. It is very sad. It is also a very competitive and difficult industry,” Bourree said.
The Philips have earned local and international accolades for their food and luxury suites. Sooke Harbour House is regularly featured in travel guides.
Among its many honours, it received a Grand Award from New York’s Wine Spectator magazine in 2000 for its wine collection. That same year, a New York Times article described the Sooke Harbour House as being one of Canada’s half-dozen best restaurants.
Sooke Harbour House attracts visitors from around the world, including movie stars. It was used as a location in the 1994 romantic comedy film Sleeping with Strangers and television series have also been filmed there.
The Philips are known locally for the many special events staged at Sooke Harbour House and for their support of fine arts. Art is featured on the walls of their hotel. Even a fence features shapes of fish illustrated through bended branches.
Sooke Harbour House was an early leader in supporting locally grown food. Its own gardens provide produce and herbs for its dishes.
In 2012, the Philips listed the Sooke Harbour House for $5.9 million, but it did not sell. Sinclair Philip said then that the tourism business had declined.
He cited the same reasons as other operators: a strong Canadian dollar compared with the U.S. dollar, reduced tourism marketing money, and stronger enforcement of drinking and driving rules.
