A landmark resort in Manchester metropolis centre has been acquired by a non-public fairness agency which invested in Typhoo Tea this summer.
Funds managed by Zetland Capital Companions have agreed to accumulate the 338-bedroom Macdonald Manchester Hotel from Macdonald Accommodations & Resorts.
The London-based purchaser has additionally acquired the 156-bedroom Macdonald Holyrood Hotel in Edinburgh from the identical vendor.
The agency mentioned the deal, which has been agreed for an undisclosed sum, is “one of many largest motels transactions accomplished outdoors of London in 2021”.
The motels are to be managed by Zetland’s three way partnership associate, Hamilton Hotel Companions.
Ahmed Hamdani, managing associate at Zetland Capital Companions, mentioned: “We’re delighted to have acquired these two very properly positioned motels in prime UK cities.
“Our technique is to supply important funding to refurbish and reposition these motels.
“This acquisition aligns with our funding technique to buy and put money into well-located motels throughout the UK, the place we will materially improve the product providing and profit from the restoration of demand within the UK’s key cities.”
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Frank Croston, associate at Hamilton Hotel Companions, added: “We’re delighted to be increasing our partnership with Zetland by means of the acquisition of those two motels in two of the UK’s strongest markets.
“We’re trying ahead to working with Zetland and the resort groups to speculate into and reposition these motels.”
Aaron Falls, chief monetary officer at Macdonald Accommodations & Resorts, mentioned: “The profitable sale of those well-known motels is a serious milestone in our strategic marketing strategy, which is able to see a considerable reinvestment in upgrading the rest of our 28-strong resort portfolio and 9 resorts, along with additional debt discount.”
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Rob Stapleton, head of resort transactions at Savills, added: “We’re happy to have suggested on this important transaction in two key UK markets. Regardless of the uncertainty attributable to Covid, the chance generated important curiosity from the market.
“It was a pleasure working alongside the administration staff at Macdonald Accommodations & Resorts and with Zetland to conclude this deal.”
Zetland Capital Companions was suggested by Burgess Salmon (UK authorized), KPMG (tax and finance), EY (structuring), Christie & Co (industrial), Lockton (insurance coverage), Chandler (technical), Nova Ambiente (environmental), Westfort Advisors (debt) and Arendt (Luxembourg authorized).
Macdonald Accommodations & Resorts was suggested by Savills, CMS Cameron McKenna Nabarro Olswang (authorized) and Alvarez & Marsal (tax).
Starwood European Finance Companions financed the acquisition and was suggested by White & Case.