Fairtree Hospitality Real Estate Private Equity Fund has bought the Grange hotel in Cumbria off an asking price of £4.5m.
The South African private equity fund has bought the 55-bedroom property in Grange-over-Sands from Hugh and Jenni Rushton.
The acquisition represents Fairtree’s eighth investment in the UK hospitality market, with more to follow. The Fairtree fund already owns hotels in the UK including the Headland, Palace and Queens hotels in Torbay, which it acquired last year for £12.5m.
UK hospitality management company Providence Hospitality will manage all of Fairtree’s properties.
Joe Bester, director of Providence Hospitality, said: “Providence prides itself on the highest quality of customer care, and we are keen to maintain our reputation in these new locations.”
Julian Troup, head of UK hotels agency at Colliers International, secured the sale on behalf of Fairtree. He said: “We are seeing an emerging trend of increased demand for quality provincial hotel opportunities from a diverse buyer set. These profiles range from international investors (attracted by weaker sterling and improving trading prospects), private buyers (attracted to the benefits of a lifestyle opportunity) to corporate investors (attracted to favourable returns and real estate alternatives).
“It is notable that since the beginning of 2016, over 20% of UK hotel sales completed by Colliers International were to overseas buyers. The devaluation of Sterling following the EU Referendum means such transactions are now around 20% less expensive than a year ago, thereby making the UK hospitality market an even more attractive prospect for international buyers.”
Legal advice for Hugh and Jenni Rushton was provided by Napthens.