Twelve properties from the Menzies Hotels portfolio have been bought out of administration by international property and investment firm The Topland Group for more than the initial £80m asking price.
The 15-strong independent Menzies Hotels group was put up for sale in the summer after its parent company, Menzies Hotels Operating Ltd, entered administration in May. Bespoke Hotels will now take over management of the 12 hotels under Vision Asset Management.
The group's remaining three hotels in the portfolio- situated in Luton, Gatwick and Swindon - have closed, having been operated under shorter shorter-term lease agreements.
Jeremy Hill, director and head of hotels at Christie & Co, which sold the properties, said the response to the sale of the four-star collection is evidence that ‘the UK hotel market is gathering pace as trading levels improve’.
“We are delighted to announce the sale of Menzies Hotels, one of the leading private hotel groups in the UK,” said Hill. “Christie & Co launched the sales process in the summer of this year, and the huge interest we received saw us undertake a substantial number of asset tours for interested parties.”
Rob Croxen, partner at KPMG and joint-administrator, said: "Following our appointment in May 2013 as administrators to the non-trading parent companies of Menzies Hotels Group, we have worked closely with stakeholders to secure the best possible outcome for creditors.
"After reviewing a number of options, it became clear that a pre-pack sale of the business and the freehold properties would provide the greatest return to creditors, while also preserving the majority of jobs across the business.
"Unfortunately, however, the terms of the three leasehold properties proved to be unattractive to potential buyers. We will be assisting those affected employees in claiming redundancy payments from the Redundancy Payments Office."
The 12 hotels bought out of administration are: -
- Aberdeen Airport
- Bournemouth (Carlton)
- Bournemouth (East Cliff Court)
- London Chigwell
Last year, the the Derbyshire-headquartered Menzies Hotels group unveiled a new look and vision across its portfolio, investing around £7m into a variety of redevelopment projects for some of its 13 four-star properties.
The revamp included £2.2m being pumped into Menzies’ flagship property, the Welcombe hotel, spa & golf club in Stratford-upon-Avon (pictured); and a £1.1m investment into its two Bournemouth properties, the Menzies Carlton and East Cliff Court.
The Topland Group was advised by Osborne Clarke, the vendors by Allen & Overy.
In June 2011, Piccadilly Hotels, the former parent of Menzies, also fell into administration. The business’s lender, Lloyds Banking Group, agreed a financial restructuring under the new company name of Cordial Hotels.
The sale of Menzies Hotels comes as Christie & Co prepares to bring new hotel opportunities to the market early in 2014 – ‘helping to meet the growing levels of demand from investors and owner operators’.
Topland Group was advised by Osborne Clarke, the vendors by Allen & Overy.