Somerston Hotels sets out expansion plans under new Atlas Hotels name
The company, which currently operates 47 Holiday Inn Express hotels and one Hampton by Hilton in the UK, changed its name on 27 February following its acquisition by private equity firm Lone Star and announced its intention to grow the business to 60 sites over the next few years.
Under the move it also signed an agreement with InterContinental Hotels Group (IHG) to extend the life of the current franchise agreements by 15 years and set out a joint plan to develop at least 1,000 extra bedrooms by the end of 2018. It also plans to develop more Hampton by Hilton hotels with Hilton Worldwide.
Somerston Hotels managing director Keith Griffiths, who has become managing director of Atlas Hotels, said the change of name had been triggered by Lone Star's acquisition.
He said: "We are delighted to be combining the portfolios under the Atlas Hotels name. The values and identity of the company will remain as strong and clear as they have always been and our mission continues to be one of achieving success by putting guest experience and satisfaction at the heart of our business.
“2014 was an exciting year for the company with significant financial growth, above-market revPar increase for the third consecutive year, record levels of guest and employee satisfaction and a big increase in the size of the company.
“We will now embark on further growth through building out our substantial development pipeline, whilst also keeping a look out for acquisition opportunities. We can’t wait to get started on the next phase of the company’s growth and development.”
Under the change the Somerston Group is no longer a shareholder in Atlas Hotels, but its company Somerston Capital will continue to work alongside it as the developer of new build projects with responsibility for site acquisition and the provision of development management services. Somerston Capital managing director Shaun Robinson will work as strategic advisor on the portfolio.
He said: "We are excited to continue to work with Atlas Hotels to grow the portfolio through both development and acquisition to help to achieve the objectives of the enlarged group.”
