SGS Hotels (UK) looks to expand following Ramada Birmingham Solihull acquisition

The company, a subsidiary of the Indian company Subhash Gulati Group, which has interests in hotels, shopping centres and aviation, is hoping to add another two hotels to its portfolio next year with plans to own up to six by 2015. 

"We are currently looking for opportunities, either with branded or non-branded hotels," partner Navin Varma told BigHospitality, "The intention is to expand the company and form a group, rather than stick with just one hotel." 

Ramada Birmingham Solihull​

Varma said refurbishment work was set to start next week on the 145-bedroom Ramada Birmingham Solihull, also known as The George, which property adviser Christie & Co brought to the market earlier this year on behalf of the joint administrators for Ailsa Solihull Limited. 

Christie & Co director Gavin Wright said SGS was one of eight companies involved in a best and final offers process after the hotel's price was reduced to £7.5m.

"This well-located hotel is an excellent first acquisition in the UK for SGS Hotels (UK) Ltd. Following the property going into administration and a subsequent reduction in asking price to £7.5m, we generated a number of viewings," he said. 

Varma said the location had been a big draw: "It's on Solihull High Street, near to the National Exhibition Centre (NEC), Birmingham Airport and the M42, so it has a lot of potential, but it does need some capital spent on it to bring it up to standard," he said. 

SGS plans to refurbish the rooms and public areas, which include a lounge, bar and restaurant and will work with the Ramada, who will continue to operate the hotel going forward. 

Varma, who has experience of operating hotels in Scotland, said the company would also be introducing free Wi-Fi and free car parking for guests and installing a gym next year.