Newly formed company Akkeron Hotels has acquired eight properties belonging to the Folio Hotels group, which went into administration in December last year, as a platform for building a portfolio of 150 regional hotels across the UK.
Akkeron, an investment businesses formed in 2008 by Citibank’s former global head of real estate and lodging, James Brent, has acquired the leasehold interest of eight hotels from the Mulbourn group, a company erected to rescue the 19-strong Folio hotels from administration.
Akkeron, which will be led by Brent, Colin Johnston, managing director of Clear Healthcare, and Matthew Welbourne, formerly managing director of Mulbourn, will use the eight Folio hotels to build a portfolio of 150 properties operated under a blend of freehold, leasehold and management contracts.
Akkeron's expansion plans
Welbourne, who has also held roles at Hilton and Queens Moat House Hotels, said he was unsure how many of the hotels would remain with the Folio group.
“We are in discussions with all the hotels to stay under the Folio banner, but its early days,” he said. “Some may decide to leave the brand, but they will still be operating under our management teams. When we start to expand our portfolio we will consider the new hotels on a case-by-case basis. If it’s appropriate to operate them under Folio then we will do that.”
The eight hotels now operated by Akkeron include The Harte and Garter in Windsor, The Caledonian in Oban and The Yorkshire in Harrogate. Akkeron is also already ‘engaging’ in a number of potential deals to acquire further hotel businesses.
Brent, who brings to the company experience working in the financial sector, said: “Akkeron Hotels has been set up to capitalise on current market conditions in the sector, and the agreement with Folio has enabled us to synthesise Folio’s first class management team with our financial/financing expertise.”
The remaining 11 hotels in the Folio group not acquired by Akkeron, due to considerably higher rental costs, have been handed back to their respective owners.
Folio Hotels went into administration in December 2008 with 13 of its 36 hotels immediately acquired by Bespoke Hotels and 19 by Mulbourn, which will now be wound-up by administrators.