Kew Green Hotels acquires Holiday Inn Bromsgrove
The group paid an undisclosed above asking price sum for the four-star hotel, which will take its total portfolio of Holiday Inn-flagged hotels to 19.
The acquisition follows Kew Green Hotels’ purchase of four Holiday Inn hotels in Brighton, Norwich, Leeds and East Kilbride from Stardon Capital Investments earlier this year.
The Richmond-based operator said it hopes to expand its UK portfolio to in excess of 60 through a mix of single asset and portfolio acquisitions.
“We are very pleased to have added this hotel to our growing portfolio of 24 owned and 12 managed hotels throughout the UK,” said Paul Johnson, chief executive of Kew Green Hotels.
“We look forward to working with the hotel team to reinforce its position as the leading full service hotel in Bromsgrove, for both business and leisure travellers alike.”
Strong interest
Property advisor Christie+Co, which handled the sale on behalf of joint-administrators David Oprey, Richard Toone and Adrian Hyde from Chantrey Vellacott, said there had been ‘extremely high interest’ in the Bromgrove property, with multiple offers and viewings.
“The Holiday Inn Bromsgrove is an excellent acquisition for Kew Green Hotels, adding to its 18 other Holiday Inn-flagged hotels. It is a well-invested, purpose-built hotel with extensive leisure, meeting and conference facilities, so meets all the requirements of the serious operator,” said Gavin Wright, director of Hotels at Christie + Co’s Birmingham office.
He added that the above the asking price sale was ‘indicative of a growing strength in the UK hotel market’, with both London and regional properties ‘generating great interest and good prices’.
Regional rebound
BigHospitality has published several reports pointing to an improvement in the regional market in recent months, with experts pointing to growing momentum as investor confidence returns on the back of strong trading performance by regional hotels.
A report published by business advisors BDO LLP earlier this month said that regional investment activity picked up considerably in 2013 for 'the first time since the recession’.
It predicted that regional activity would drive hotel investments in 2014, with a 138 per cent uplift in investment forecast for the regions.
