Savills, acting jointly with JLL, has sold the Ramada Salford Quays (above) and Ramada Birmingham Mailbox on behalf of Shiva Hotels for in excess of the £21.5 million guide price. The hotels have been acquired by MCAP Global Finance, a UK subsidiary of the New York investment advisor Marathon Asset Management.
The properties comprise 142 and 90 bedrooms respectively along with bars, restaurants and conferencing and business facilities. Both occupy outstanding trading locations in the buoyant UK regional hotels market, close to Manchester’s MediaCityUK and Old Trafford and Birmingham’s landmark mixed-use Mailbox development.
Shiva Hotels, which has recently acquired a handful of development sites in Central London, decided to market the properties in February as they were deemed non-core within its portfolio. The hotels have been sold with the opportunity to break the existing franchise agreement and reposition to an international quality four star brand. They will be re-branded and managed by Valor Hospitality Limited on behalf of MCAP Global Finance.
Rob Stapleton, hotels investment director at Savills, comments: “These two hotels provide compelling investment opportunities and were well received by the market. They will be an excellent addition to Marathon’s growing UK portfolio. We are very pleased to have secured such a strong result for our client, enabling Shiva Hotels to further its portfolio repositioning strategy.”
Will Duffey, executive vice president in the hotels and hospitality group at JLL, adds: “The combination of the exceptionally strong regional UK hotel operating market, together with the operational flexibility of these assets, drove considerable appetite from investors. With over 80 parties signing the NDA to consider the opportunity, we were able to drive an exceptional price in excess of the £21.5m guide.”
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