Rapidly expanding Newcastle based hotel and bar operator Cairn Group has acquired five properties from the dwindling Hotel Collection portfolio, off a guide price of £75m.
The deal includes the Redworth Hall hotel, Durham; Old Ship hotel, Brighton; the Angel hotel, Cardiff (pictured); the Majestic hotel, Harrogate; and the Stirling Highland hotel, Stirling. Together they add 665 bedrooms to what now comprises a total of 3,000 bedrooms across the group.
In March, Lone Star Funds announced that it would be selling 10-strong portfolio of regional properties within the Hotel Collection, for a combined total price of £130m. Andrew Brownsword Hotels completed the first sale with the acquisition of the 152-bedroom Imperial hotel in Torquay, in August.
Cairn Group - privately owned by the Handa family - announced its intentions to expand following a £101m refinance deal completed with HSBC in May. So far this year, the company has acquired the four-AA-star, 39-bedroom Stoke Place hotel in Stoke Poges, Buckinghamshire, and the 11th century, Grade II-listed property, The Parish bar in York.
Richard Warren, finance director of Cairn Group said the latest acquisitions will enable the company to break into new territories and penetrate new customer bases.
"Each of the hotels are completely unique and operating successfully," he explained. "We see huge potential for them within the Cairn Group portfolio as we expand our coverage into new areas, offering a truly ‘national' choice for our customers who remain our number one priority, alongside ensuring we provide first class hospitality, each and every time."
Savills and Rothschild jointly advised on the sale of the hotels. Martin Rogers, head of UK hotel transactions at Savills, said: "We are delighted to have secured new ownership for these five outstanding hotels. The unique character of each hotel and their unrivalled locations ensure they are profitable business, attracting visitors all year round."
The acquisitions were supported by Mincoffs Solicitors, HSBC Bank and Deloitte.
Cairn Group's portfolio now includes 31 hotels and more than 30 bars and restaurants. Its hotel collection include a mix of properties operating under international brands including Best Western, Holiday Inn, Crowne Plaza, Hotel Indigo, Mercure and Ramada, as well as independent entities such as the Royal Station hotel, Newcastle and the County hotel, Carlisle.
Founded in 1963 by Roshan Lal Handa, Cairn Group is today run by his sons Arvan and Aran.
Lone Star acquired the Hotel Collection in June 2014, when the group was made up of 21 properties. A year later it announced that it would dispose of the individual properties within the group in order to focus on properties operating under various international brands such as Hilton, Doubletree by Hilton and Hilton Garden Inn from Hilton Worldwide, Mercure and MGallery from AccorHotels, and Jurys Inn under the umberella of newly created company, Amaris Hospitality.
The four remaining Hotel Collection properties to be sold include the Billesley Manor, Stratford-upon-Avon; Imperial, Blackpool; Shrigley Hall hotel, golf and country club, Macclesfield; and Aberdeen Altens, Aberdeen.
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