Two Ramada hotels sold for £21.5m after bidding war

Ramada Salford Quays and Ramada Birmingham Mailbox have been sold to asset management firm MCAP Global Finance for more than £21.5m.

Some 80 parties signed the NDA to look at the hotels, driving the price beyond its £21.5m guide.

The hotels, formerly owned by Shiva Hotels, will now be taken on by the UK subsidiary of the New York investment advisor Marathon Asset Management. They will be managed by Valor Hospitality

The 142-bedroom Ramada Salford Quays is situated close to Manchester's MediaCityUK, while the 90 bedroom Ramada Mailbox in Birmingham is located within the Mailbox development, which is undergoing a £50m modernisation programme.

The deal was done by JLL's Hotels and Hospitality Group and Savills.

JLL's Hotels and Hospitality Group executive vice-president Will Duffey said: "The combination of the exceptionally strong regional UK hotel operating market, together with the operational flexibility of these assets, drove considerable appetite from investors. With over 80 parties signing the NDA to consider the opportunity, we were able to drive an exceptional price in excess of the £21.5m guide."

Rob Stapleton, director at Savills' Hotel Investment team, added: "These two hotels were well received by the market and provide compelling investment opportunities; they are an excellent addition to Marathon's growing UK portfolio. We are also delighted to have secured such strong results for our clients, enabling them to further their own portfolio repositioning strategy."

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