London-based private equity firm Zetland Capital Partners has snapped up two properties in Manchester and Edinburgh from Macdonald Hotels & Resorts.
The deal for the acquisition of the 338-bedroom Macdonald Manchester hotel (pictured) and the 156-bedroom Macdonald Holyrood hotel for an undisclosed sum was announced two days after The Catererrevealed that Tara O'Neill had stepped down as chief executive of Macdonald Hotels & Resorts "by mutual consent, to pursue other opportunities" just 11 months after joining the company.
The two hotels, which will now undergo "significant investment" to refurbish and reposition them, will be managed by Zetland's joint venture partner Hamilton Hotel Partners.
Zetland's investments include Portobello Brewery, a collection of 12 pubs in London which it bought earlier this month, with a view to grow the business to 80 outlets.
Ahmed Hamdani, managing partner at Zetland Capital Partners, said: "This acquisition aligns with our investment strategy to purchase and invest in well-located hotels across the UK, where we can materially enhance the product offering and benefit from the recovery of demand in the UK's key cities."
Aaron Falls, chief financial officer, Macdonald Hotels & Resorts, said the sale of the hotels marked "a major milestone" in the company's future business strategy which would enable "a substantial reinvestment in upgrading the remainder of our 28-strong hotels portfolio and nine resorts, together with further debt reduction".
Hamilton Hotel Partners' portfolio of managed properties includes the St Pancras Renaissance and the Marriott County Hall, both in London.