Major multiple acquisition augments growth for North East leisure group17/11/2016
A LEADING North East Leisure group has announced the major acquisition of five hotels across the UK against a list price of £75 million – a move which is set to significantly expand the company’s reach across the UK.
Newcastle-based hotel and bar operator Cairn Group has successfully acquired five properties in Stirling, County Durham, Harrogate, Cardiff and Brighton, adding 665 rooms to its now 3,000 room portfolio.
It is understood to be the biggest hotel acquisition by a North East company this year and means the family-owned business now employs over 3,000 staff.
Incorporating, The Old Ship Hotel in Brighton, The Angel Hotel in Cardiff, The Majestic Hotel in Harrogate, Durham’s Redworth Hall Hotel and The Stirling Highland Hotel; each of the five acquired are high quality and boast prime locations and rich heritage.
The most recent acquisition marks the Group’s third of 2016, following a £101m refinance deal completed in May.
Cairn Group finance director Richard Warren said: “This is an incredibly exciting move for us. We are continuing to break into new territories and penetrate new customer bases.
“Each of the hotels are completely unique and operating successfully. We see huge potential for them within the Cairn Group portfolio as we expand our coverage into new areas, offering a truly ‘national’ choice for our customers who remain our number one priority, alongside ensuring we provide first class hospitality, each and every time.”
Mincoffs Solicitors LLP and HSBC Bank plc have supported Cairn Group on the lucrative acquisition of the business.
John Nicholson, corporate partner at Mincoffs Solicitors, said “The addition of this new suite of hotels to Cairn Group’s portfolio is incredibly impressive and, having acted for the business for over 25 years, it is fantastic to see the company continue its ambitious growth.”
Mincoffs also oversaw Cairn Group’s successful acquisition of 11th century, grade II-listed property, The Parish bar in York in August, and the purchase of Stoke Place in January.
Julia Fox of Deloitte, who led tax advice for the purchaser, said “Having been involved at every step of the way, the completion of this transaction is a landmark deal for this forward-thinking group. It’s always a pleasure to advise them as they deliver their growth and expansion plans.”
Savills and Rothschild jointly advised on the sale of the hotels.
Martin Rogers, head of UK hotel transactions at Savills, added: “We are delighted to have secured new ownership for these five outstanding hotels. The unique character of each hotel and their unrivalled locations ensure they are profitable business, attracting visitors all year round.”