MGM Muthu acquires five Scottish hotels

04 May 2017 by
MGM Muthu acquires five Scottish hotels

Singapore-based MGM Muthu Hotels has expanded into Scotland with the acquisition of five hotels.

The group has three hotels in England, including the Belstead Brook hotel in Ipswich, the Westcliff hotel in Southend-on-Sea, and Clumber Park in Nottinghamshire, which it acquired last month off a guide price of £7m, as well as a further 27 worldwide.

In a deal facilitated by property firm Colliers International, the group acquired Ian Cleaver's Highland Heritage portfolio of four hotels and 16-strong fleet of liveried shuttle coaches off an asking price of £4.5m.

The hotels include the 96-room Royal hotel and the 132-room Ben Doran hotel, both in Tyndrum, the 99-bedroom Dalmally hotel in Strathorchy, and the 66-bedroom Alexandra hotel in Oban, with 26 more rooms in planning.

The sale did not include the group's Kilchurn Castle, which is currently managed by Historic Scotland.

The company also recently acquired the 63-bedroom Newton hotel in Nairn (pictured) from a London-based owner off an asking price of £4m.

Monicca Maran, corporate director of the MGM Muthu Group and Kailayapillai Ranjan, chief executive of Highgate Asset Management, who assisted with the acquisitions, said: "We are extremely thrilled about the five properties that spell a surreal scenery magically enveloped in the enchanting views of Scotland."

Alistair Letham, the Scottish director in the UK hotels agency team at Colliers International, said: "Muthu is an ambitious luxury chain which will be well positioned to further develop the potential of these excellent properties in a way that will be welcomed by the local economy."

Julian Troup, head of UK hotels agency at Colliers International, added: "We are seeing an emerging trend of increased demand for quality provincial hotel opportunities from a diverse buyer set, including international investors, who have been attracted by weaker sterling and improving trading prospects."

Singaporean group MGM Muthu Hotels acquires Clumber Park >>

Westcliff hotel acquired by Singaporean group MGM Muthu Hotels >>

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