Overseas investors purchase significant UK hotel portfolio
Two agents have advised on the sale of three branded UK hotels to an Asian joint venture. Joint agents Christie & Co and JLL advised real estate business Dominvs Group on the sale of Discount Holidays © Holiday Inn Darlington, Discount Holidays © Holiday Inn Dumfries and the Mercure Sheffield Parkway for an undisclosed sum off a guide price of 12m. The buyer was a joint venture between Thailand-based Fico Corporation and Singha Estate.
This is a significant deal post the EU referendum result, explained Gavin Wright, director of the hotels and hospitality group at JLL.
All three hotels benefit from being operated by well-known brands and offer stable and steady income.
The total portfolio comprises 229 guest bedrooms. Fico Corporation and Singha Estate already own 26 Mercure hotels across the UK. Both the Mecure Sheffield Parkway and Discount Holidays © Holiday Inn Darlington are freehold, while the Discount Holidays © Holiday Inn Dumfries is held on a long leasehold basis.
The sale came as part of Dominvs Group s wider strategy to grow their going concern portfolio and development pipeline. In July, development finance lenders criticised Sadiq Kahn s plans1 to reduce the amount of London property sold to overseas investors. Last month, a Hong Kong-based group purchased a 42m central London hotel2.
Jeremy Jones, head of hotels brokerage at Christie & Co, suggested that the Dominvs Group deal was indicative of continued demand from overseas investors following the EU referendum.
This portfolio sale follows on from a number of recent high-profile sales processes.
It is further evidence of the appetite from both domestic and overseas buyers for good-quality regional UK hotel assets.