The 53-bedroom Hoste in Burnham Market, Norfolk, is being sold to the City Pub Group for £8.65m.
It has been acquired from former media executive Brendan Hopkins and his wife, Bee, who bought the business in 2012 after it had been previously owned by Jeanne Whittome and her late husband Paul for more than 20 years.
The Hopkins undertook a number of changes at the hotel, including renaming it from the Hoste Arms, and adding a reception area, function space and four bedrooms. Earlier this year they sold two cottages, comprising a total of nine bedrooms, which the Hoste continues to operate.
The Hoste will become the largest property within the City Pub Group portfolio, which now numbers 50 sites.
In the company’s annual financial results to 31 December 2018, announced this week, the group said of the Hoste: “It is a prominent and popular location only a 45-minute drive from Norwich where the business’ operates the Georgian Town House which currently has 22 bedrooms and is due to open another 10 in 2019.
“These two sites should complement each other in terms of marketing, suppliers, staff and other operational activity.
“This site will be acquired for a cash consideration of £8.65m at the end of April 2019 plus further additional significant consideration subject to a sales performance incentive over the next two-month period. The site generated earnings before interest, tax, depreciation and amortisation of approximately £0.7m for the year-ended April 2018.”
The City Pub Group, which reported a revenue increase of 22% to £45.7m with adjusted EBITDAup 28% to £7.9m, said that it is on course to increase its estate to between 65 and 70 pubs by mid-2021.
The Guardian named the Hoste as one of the “top 10 country hotels in the UK” in 2019.