Main Photo: The King Street Townhouse
Date: May 2019
Location: Manchester City Centre, UK
Name: King Street Townhouse and Great John Street Hotel
No. of Keys: 70 between the two
Seller: Eclectric Group, run by Eamonn and Sally O’Loughlin
Buyer: The Hut Group, a beauty and lifestyle company big in online sales.
Hut entered the hotel sector in 2016, buying the Hale Country Club & Spa. The Hut Group recently announced newly improved and extended group banking facilities, in excess of US$1bn to support investments in beauty, technology and infrastructure.
Based in Manchester, its investors include Blackrock, KKR, Merian Global Investors and Belgian group Sofina. Last year saw the company report revenue of more than £1bn.
Eclectic founders Eamonn and Sally O’Loughlin are retaining two former Eclectic properties, in south Manchester – Didsbury House Hotel and Eleven Didsbury Park.
The pair – located in the city centre – accommodate a variety of lounge and bar areas, as well as roof-top terraces. King Street Townhouse also houses an infinity pool, private screening room and a wine cellar dining space.
The deal is designed to demonstrate the Hut Group’s approach to effective engagement with consumers in both the online and offline environment. As such, the hotels will form part of its growing marketing infrastructure.
The investment will also be supported by a £10m refurbishment upgrade plan.
Matthew Moulding, founder and chief executive of The Hut Group, said: “As a fast-growing, brand-led business we are always looking to develop innovative approaches to drive greater engagement with our customers and today’s acquisition is testament to that strategy.
“With consumer behaviour continuing to evolve away from the traditional high street setting, these two highly prestige hotels will be instrumental in showcasing our leading Beauty and Wellbeing brands.”
Eamonn O’Loughlin said “While it has been a difficult decision for us to take, we feel both hotels are going into the best of hands with Matthew and his team and we are extremely proud of the portfolio that we have built over the years.”
The Hut Group was advised by KPMG for financial due diligence, Deloitte for tax due diligence and Gowling WLG for legals. The vendors were advised by Convex Capital and Freeman Fisher.
THPT Comment: Interesting in the same week Equinox, the health club operator, has announced their first hotel in New York…is there a trend here?
First Seen: The Caterer
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