The portfolio includes about 2,000 bedrooms within three Crowne Plaza hotels, seven Holiday Inn hotels and one Best Western PLUS across the UK.
Real estate firm Christie & Co handled the sale, which it described as ‘a highly competitive process’.
Jeremy Hill of Christie & Co said: “This was a rare opportunity to acquire a ready-made portfolio of hotels with a profitable trading profile. The group has benefited from an ongoing extensive multi-million pound refurbishment programme with recent investments in key assets including Crowne Plaza Glasgow, Holiday Inn Stratford-upon-Avon and Crowne Plaza Chester.
“Marathon Asset Management has acquired a strong portfolio that gives it a platform from which it will be able to fulfil its ambitions for further hospitality investments in the UK and continental Europe. With business travel accelerating in the UK, the portfolio’s footprint covers markets that are extremely well-positioned for future growth. Marathon intends to further accelerate the portfolio’s growth through a substantial investment programme.
“The deal highlights what excellent value good quality hotel assets are right now — both for vendors and buyers. While vendors are benefiting from values being on their way up following the recession, they are still short of their pre-recession peak. And this is reflected in values both in and around London, and the UK regions.”
The hotels were put on sale in February 2014 by Goldman Sachs Whitehall Fund, which acquired what was formerly known as Queens Moat Houses (QMH) for £544m in 2004, after the firm announced debts of £632m.
The 11 hotels acquired by Marathon Asset Management are:
• Crowne Plaza Chester, 160 bedrooms
• Crowne Plaza Glasgow, 283 bedrooms
• Crowne Plaza Nottingham, 210 bedrooms
• Holiday Inn Doncaster, 102 bedrooms
• Holiday Inn Harrogate, 214 bedrooms
• Holiday Inn Luton South, 140 bedrooms
• Holiday Inn Peterborough West, 133 bedrooms
• Holiday Inn Plymouth, 211 bedrooms
• Holiday Inn Solihull, 120 bedrooms
• Holiday Inn Stratford-upon-Avon, 259 bedrooms
• Best Western Plus Reading Moat House, 129 bedrooms