Zetland Capital Partners, a London based private equity firm, announced on Wednesday that it has agreed to acquire the 338-bedroom Macdonald Manchester Hotel and the 156-bedroom Macdonald Holyrood Hotel in the UK from Macdonald Hotels & Resorts.
The acquisition, for an undisclosed sum, is one of the largest hotel transactions completed outside of London in 2021.
The hotels will be managed by Zetland’s JV partner, Hamilton Hotel Partners.
'We are delighted to have acquired these two very well located hotels in prime UK cities,' said Ahmed Hamdani, managing partner at Zetland Capital Partners. 'Our strategy is to provide significant investment to refurbish and reposition these hotels. This acquisition aligns with our investment strategy to purchase and invest in well-located hotels across the UK, where we can materially enhance the product offering and benefit from the recovery of demand in the UK’s key cities.'
Aaron Falls, Chief Financial Officer, Macdonald Hotels & Resorts, said: 'The successful sale of these well-known hotels is a major milestone in our strategic business plan, which will see a substantial reinvestment in upgrading the remainder of our 28-strong hotel portfolio and 9 resorts, together with further debt reduction.'
Rob Stapleton, head of hotel transactions at Savills, which advised the vendor, commented: 'In spite of the uncertainty caused by COVID, the opportunity generated significant interest from the market. It was a pleasure working alongside the management team at Macdonald Hotels & Resorts and with Zetland to conclude this deal.'
Starwood European Finance Partners financed the acquisition.
