Hotel industry and travel news from around the European region: TUI Group sells 49% stake in RIU Hotels, Marathon acquires UK portfolio of 17 IHG hotels and more...
TUI Group sells 49% stake in RIU Hotels
The TUI Group has also announced the sale of its minority 49% stake in the 21-hotel real estate owning arm of RIU Hotels to its joint venture partner the Riu family. The deal values RIU Hotels at an enterprise value of €1.5 billion at a 2019 EBITDA multiple of 11.9, representing a net cash consideration for TUI of €540 million, with an additional €130 million earn-out element payable once RIU Hotels delivers its budgets for 2022 and 2023. The transaction only included the real estate component of RIU, with TUI retaining its 50% stake in the hotel management business of the Spanish holiday resort brand.
Marathon acquires UK portfolio of 17 IHG hotels from Cerberus
The 17-hotel portfolio of Holiday Inns and Crowne Plazas has been sold to US private equity firm Marathon Asset Management by Cerberus Capital Management, another US private equity firm, for a reported £180 million (£75,000 per room). Located in regional UK markets such as Leeds, Leicester, Reading and Southampton, the portfolio includes 2,374 rooms spread across 15 Holiday Inn branded hotels and two Crowne Plaza branded properties.
Hotel Brooklyn in Manchester sold by Marshall CDP
The 189-room Hotel Brooklyn in Manchester, UK has been sold by UK developer Marshall CDP to a private investor. The New York-themed hotel, located in the city centre of Manchester, opened in February 2020 and is managed by UK white-label operator Bespoke Hotels, who will continue to operate the property post-acquisition.
UK hotel Bredbury Hall sold out of administration to Vine Hotels
The 149-room Bredbury Hall Hotel near Manchester in the UK, has been sold out of administration to local owner operator Vine Hotels, off an asking price of £5.75 million (£38,000 per room). The new owners of the property plan a significant refurbishment programme which will include extending the hotel by an additional 50 rooms, and creating 12 meeting rooms, including a theatre and a converted barn space for 900 people.
Channel Islands hotel portfolio sold to Hand Picked Hotels
An 86-room portfolio of three hotels in Guernsey has been sold to UK hotel owner operator Hand Picked Hotels. The portfolio, which includes the 45-room Fermain Valley hotel, the 27-room Braye Beach Hotel and the 14-room Ziggurat hotel, was sold off a reported asking price of £11.5 million (£133,000 per room). The three newly acquired hotels will join Hand Picked Hotels´ existing portfolio of 19 properties across the UK.
Highland Coast Hotels acquires four hotels in Scotland
Scottish owner operator Highland Coast Hotels has acquired four hotels across Scotland, including the 22-room Royal Golf Hotel, the 21-room Royal Marine Brora, the 11-room Kylesku Hotel and Restaurant and the 7-room Newton Lodge. All four properties are located along the North Coast 500, the 516-mile scenic route around the north coast of Scotland. The new owners plan to renovate all four hotels following an expected strong summer season in 2021.
Inn Collection Group acquires the Carlton Hotel in Lytham St Annes, UK
UK-based hotel and pub owner operator Inn Collection Group has acquired the 16-room Carlton Hotel in in the northern English seaside town of Lytham St Annes. The property is located adjacent to the Lindum Hotel, which the Inn Collection Group acquired in 2020, and the two hotels will be combined as a single operation. Backed by London-based private equity firm Alchemy Partners, this latest acquisition brings the group´s hotel and pub portfolio to 23 sites.
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