Every week we will be delving into the world of Hotel Property thanks to our friends The Hotel Property Team (THPT). We will be covering 5 recent deals that has taken place over the last 7 days with insights from THPT Managing Partner, Dev Anand.
German Investor Deka Immobilien Wins Dublin’s Marker Hotel
Brehon and Midwest acquired the Marker Hotel and the adjoining Marker Residences in 2011 for about €30 million. While the hotel required significant investment before opening for business in 2013, both the cost of its original purchase and fit-out were reported to have been “essentially covered” by the €50.1 million sale of the Marker Residences to Ires Reit in 2014.
Located at Grand Canal Dock, the Marker Hotel comprises 187 guest bedrooms. In terms of amenities, the hotel’s current offering includes the Brasserie and Marker Bar, luxurious spa facilities, the Marker Rooftop Bar & Terrace and extensive conference and banqueting rooms.
We believe the hotel has planning for another 60 rooms, on an additional three floors. The sale was handled by CBRE.
THPT Comment – Great deal for Midwest and Brehon…but there was significant interest when the hotel hit the market at a guide price of €125m. THPT published the opportunity in June 2019 on our Hotels Available report.
Hostel Operator Safestay Buys Best Western Glasgow City for £3.15m
Hostel operator Safestay has bought the Best Western Glasgow City hotel for £3.15m. The 52 room hotel comes with outline consent to convert to a 200 bed hostel.
The freehold buy will be covered by existing cash reserves. The addition takes Safestay’s portfolio to 15 properties across Europe.
Completion of the acquisition is expected to take place on 21 October.
THPT Comment – Good to see Safestay continue it’s progression upwards and onwards with this second presence in Scotland.
Accor Launch New Brand – greet Aiming at 300+ Hotels
Accor has officially launched a new flexible economy brand, greet. The non-standardised brand will allow owners to adopt it easily, with property requirements based around room mix, rather than design.
greet sets itself apart through its name and its unique identity within Accor Group’s brand portfolio. Celebrating a philosophy of donating and giving a second chance, greet hotels invite their guests to share moments and experiences. It represents a return to meaningful essentials, to enjoying being and having fun together while shaking off formalities.
Created in early 2019, the greet brand brings a distinctive touch to the hotel Group. Following the success of its recently launched lifestyle brands, with greet Accor is continuing its plan to expand its brand portfolio in order to stay in tune with its partners and offer memorable and ever-evolving experiences to its customers. greet was created in response to a single observation – today, more than ever before, travellers want a high-quality and affordable hotel experience, while simultaneously seeking to add meaning to their purchases and reduce their impact on the planet. The greet concept addresses this dual challenge through a flexible business model for partners, and a totally new hotel experience for customers.
THPT Comment – Hmmmmm…we at THPT applaud the initiative launched here by Accor, but why do hotel groups’ branding departments think that lower-case first letters – greet rather than Greet make the brand look trendy, or in this case eco-friendly? Even their own press release mixes up the use of greet and Greet!
Oyo to Enter Luxury Hospitality Sector in Saudi with US$1billion Investment
India’s Oyo Hotels & Homes has signed an MoU with the Saudi Arabian General Investment Authority (SAGIA). As part of this agreement, Oyo will invest SAR 4 billion (US$1 billion) into building a luxury hospitality ecosystem across Saudi by adding luxury and upper-budget/mid-segment hotels to its chain in the coming months.
With this MoU, the Softbank-backed company marks its entry into offering luxury hospitality in the Kingdom.
Currently, Oyo has more than 130 hotels with 6,500 exclusive keys across more than 14 cities in the region.
THPT Comment – Another week, another deal, sorry two and another direction in which Oyo is choosing to go – luxury hotels across Saudi Arabia…where/what next?
Horwood Estate in Milton Keynes Sold to ZIZ Hospitality as First UK Purchase
De Vere Group. Christie & Co has completed on the sale of Horwood Estate, a Grade II listed manor house and conference centre in Milton Keynes, to ZIZ Hospitality for the De Vere Group.
Totalling 185 guest bedrooms and numerous conference and meeting rooms, Horwood Estate is set in approximately 40 acres of Buckinghamshire countryside, with the formal gardens providing a perfect setting for weddings and events. Additionally, the property features extensive leisure facilities, which complement the appeal of this unique hospitality business.
Horwood Estate was sold off a guide price of £15,500,000 for the freehold interest.
THPT Comment – As you will see above the fate of a lot of these properties has been rather poor…hopefully Karim and his hotelier skills will redeem this!
The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between them, they provide a range of skills and experience which is directly relevant to those involved in the hotel property market.
Sign up for their weekly newsletter by clicking here…
All images provided by – www.thpt.co.uk
Main image – richardharriscoaching.com