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Hotel Collection to sell Cheltenham Park hotel

14 November 2014 by
Hotel Collection to sell Cheltenham Park hotel

The Hotel Collection is to sell its Cheltenham Park hotel in Gloucestershire. This is the third property in the group's portfolio of 21 four-AA star hotels to hit the market in the past eight days.

The 152-bedroom property is being sold by real estate agent Savills at a guide price of £8m. It is grade II listed and includes a leisure club, restaurant and function rooms.

Martin Rogers, director of hotels, leisure and trading at Savills, said: "It offers a diverse revenue stream and long-term income could be further enhanced by extending the wedding and events facilities or adding spa treatment rooms."

The sale comes as the Hotel Collection, known as Puma hotels until a rebranding in June, sets about streamlining its portfolio. The other two hotels up for sale are the 122-bedroom Palace hotel in Buxton, Derbyshire, being marketed for a price in excess of £7m, and the 100-bedroom Basingstoke Country hotel, near Hook, Hampshire, being marketed for £5.5m.

The company is facing tough challenges. At the same time as the rebranding, it announced its £323m debt had been acquired by Lone Star Funds from the Irish Bank Resolution Corporation. In August, parent company the UK Group of Hotels was placed in administration.

A week ago it was announced that chief executive Frederik Korallus had stepped down as chief executive, with chairman Grant Hearn, who joined in September, taking over the day-to-day running of the group.

Grant Hearn to lead Hotel Collection as CEO exits >>

Puma Hotels rebrands to The Hotel Collection >>

Hotel Collection to offload two properties with price tag of more than £12.5m >>

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