A new owner is being sought for two Ramada hotels in Manchester and Birmingham, with an opportunity to rebrand the properties.
The 142-bedroom Ramada Salford Quays, Manchester, and the 90-bedroom Ramada Mailbox, Birmingham are currently owned by Shiva Hotels, which operates the properties under flexible franchise agreements from Wyndham. They are being jointly marketed for £22m.
JLL and Savills, which are jointly marketing the two hotels, suggest that the properties could be repositioned through rebranding to "an international quality four star brand" such as Starwood's Four Points by Sheraton or DoubleTree by Hilton.
The Ramada Salford Quays is located close to Media City UK, Manchester city centre and Old Trafford football and cricket grounds, while the Ramada Mailbox is situated within the landmark mixed-use Mailbox development, which is currently undergoing a £50m-plus renovation. Both hotels include bar, restaurant, conferencing and business facilities.
Will Duffey, senior vice-president in JLL's hotels and hospitality team, said that the Greater Manchester and Birmingham hotel markets are performing "exceptionally well", with consistently strong levels of room rate and occupancy growth. "The location of these hotel assets, both with existing market share and exciting prospects for growth will appeal to investors."
Rob Stapleton, director in Savills' Hotel investment team, added: "The flexible operational arrangements existing at both hotels provide potential purchasers with a variety of repositioning and rebranding opportunities to optimise performance and enhance future value."
Shiva Hotels was set up in 2003 by former derivatives trader with Lehman Brothers, Rishi Sachdev, and his father Ramesh Sachdev, an accountant who made his £400m fortune through selling his care home business.
They recognised the growth potential of the branded mid-market hotel sector and currently operate 10 hotels in the UK under Best Western, Hilton, Hampton by Hilton, Holiday Inn and Ramada brands, with three properties under development.
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