Two Holiday Inn hotels in Aberdeen enter administration
The Holiday Inn Express City Centre and Holiday Inn Aberdeen West hotels in Scotland have gone into administration.
JLL's Hotels & Hospitality Group has been appointed by joint administrators Thomas Campbell MacLennan and Alexander Iain Fraser of FRP Advisory, to sell the two sites for a figure in excess of £7m.
The 155-room Holiday Inn Express City Centre on Chapel Street in Aberdeen and the Holiday Inn Aberdeen West in Westhill, which has 86 rooms, are being sold separately or as a package and are subject to existing franchise agreements with IHG.
Aberdeen hotels are continuing to suffer from the oil price collapse which resulted in drilling activity in the North Sea falling to its lowest level for the last 35 years in October 2016. Revenue per available room (revpar) during the fourth quarter of last year fell 22% year-on-year, according to the Hotel
Bulletin: Q4 2016 published by AlixPartners, AM:PM, HRS and STR. It was the eight consecutive quarter for falling revpar in the city.
Neil Milligan, associate, JLL's Hotels & Hospitality team said: "This is a great opportunity to acquire two branded hotels at the bottom of the trading cycle. As the Aberdeen market recovers with the strengthened oil price, the strategic locations of both assets will allow incoming investors to grow revenue through strategic investment in the assets and capture the pending recovery of the wider macro economy.
"Despite the recession experienced by the energy sector that has impacted on Aberdeen hotels, the city remains a target for investors keen to enter this corporate driven market that has historically achieved some of the strongest RevPAR* growth outside of London."
Starboard acquires two Holiday Inn Express hotels for £11.5m >>
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