Croft Hotels open to ‘realistic offers'

By Andrew Sangster

York-based chain Croft Hotels has been put on the market by its parent company Greenfield Holdings which is focusing on its other holiday businesses.

Caterer understands that Greenfield is seeking buyers for the six owned hotels in the chain and has approached a number of companies about the properties.

Croft's group general manager, Stephen Broome, at first denied that the hotels were up for sale. But hours later, Greenfield issued a statement claiming that it would "take seriously any realistic offers for the hotels side of our business".

The statement added: "The success of Greenfield Holdings' hotels business has not gone unnoticed and so it is hardly surprising that a number of major hotel chains have shown an interest in acquiring some of the hotels in our portfolio."

During the year ended 31 December 1995, Greenfield made pre-tax profits of £258,000, up from £161,000 in 1994.

A heavy interest burden of £1.66m ate into the gross profits of £1.91m for 1995.

It is thought unlikely that a single buyer will purchase the whole group, given the varied nature of the properties, which include several unclassified hotels used by coach parties.

Among the star assets in Croft's portfolio are the Fairfield Manor Hotel in York and the Grange Park Hotel at Willerby, near Hull.

Fairfield Manor was bought by Croft in 1989. Since then, about £7m has been spent on the property, upgrading it from 25 to 90 bedrooms.

The Grange Park Hotel was acquired from receivers in 1991 as part of a £12.5m package including the Avant Hotel in Oldham and a development site near Godmanchester, Cambridgeshire.

Greenfield is thought to want to focus on its Rainbow Holiday UK short breaks and other travel operations.