Zetland Capital Partners Acquires Macdonald Manchester and Holyrood Hotels
Main Photo: Macdonald Manchester Hotel
Date: November 2021
Names: Macdonald Manchester Hotel and Macdonald Holyrood Hotel
Location: Manchester, England and Edinburgh, Scotland, UK
Number of Keys: 338 – Manchester; 156 – Edinburgh 494 in total
Seller: Macdonald Hotels & Resorts.
Buyer: Zetland Capital Partners LLP
London based private equity firm Zetland Capital Partners LLP is to acquire the 338-bedroom Macdonald Manchester Hotel and the 156-bedroom Macdonald Holyrood Hotel from Macdonald Hotels & Resorts.
The acquisition, for an undisclosed sum, is believed to be one of the largest hotels transactions completed outside of London in 2021. The hotels will be managed by Zetland’ s JV partner, Hamilton Hotel Partners.
Zetland, which became the majority shareholder of Typhoo Tea in summer 2021, said it plans to refurbish and reposition the two hotels.
Ahmed Hamdani, Managing Partner at Zetland Capital Partners LLP, says: “We are delighted to have acquired these two very well-located hotels in prime UK cities. 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.”
Frank Croston, Partner at Hamilton Hotel Partners, adds: “We are delighted to be expanding our partnership with Zetland through the acquisition of these two hotels in two of the UK’s strongest markets. We are looking forward to working with Zetland and the hotel teams to invest into and reposition these hotels.”
Aaron Falls, Chief Financial Officer, Macdonald Hotels & Resorts, says: “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, says: “We’re pleased to have advised on this significant transaction in two key UK markets. 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.”
Zetland Capital Partners were advised by Burgess Salmon (UK Legal), KPMG (Tax and Finance), EY (Structuring), Christie & Co (Commercial), Lockton (Insurance), Chandler (Technical), Nova Ambiente (Environmental), Westfort Advisors (Debt) and Arendt (Luxembourg Legal). Macdonald Hotels & Resorts were advised by Savills, CMS Cameron McKenna Nabarro Olswang (Legal) and Alvarez & Marsal (Tax). Starwood European Finance Partners Limited financed the acquisition and were advised by White & Case
Price: Undisclosed
THPT Comment: Wow what a lot of advisors! Great acquisition by Zetland of two perfectly-located hotels in the centre of two major UK cities. It will be interesting to see how the new owners reposition and brand the hotels. Manchester in particular has plenty of growth potential, especially in the branded sector.
First Seen: Property Funds World
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