ONE of the largest privately owned international investment groups, Topland, are announcing plans for a new budget hotel empire.
The company have earmarked £200 million of equity to invest in the start-up of a £1 billion hotel empire, according to reports in the Times today. On top of their own funds the company expects to add around £160 million of debt finance.
Topland, which is owned by multimillionaire brothers Eddie and Sol Zakay, currently owns six hotels, leased back to Thistle Hotels, which it bought three years ago, and three sites at motorway service stations.
Up to 50 sites are to be acquired in the next year and a half, developed and then leased out to budget operators such as Travelodge and Premier Inn.
The company has around £5 billion of assets, including 78 Marks & Spencer’s, and it recently sold off Tesco related assets to the tune of $1.9 billion.
Tom Betts, Topland’s director of real estate finance, said: “We have our own significant cash reserves and are therefore well placed to continue with the acquisition of both large corporate deals and property assets, with plans to increase our portfolio by a further $3.9 billion in the coming year.”