Cairn Group acquires two Scottish hotels out of administration

Newcastle-based hotel and bar operator the Cairn Group has acquired the 155-room Holiday Inn Express City Centre in Aberdeen and the 86-bedroom Holiday Inn Aberdeen West (pictured) for an undisclosed sum.

 

The hotels were owned by Aberdeen-based European Development Company, which entered administration in November 2016.

 

Joint administrators Tom MacLennan and Iain Fraser, partners with FRP Advisory, appointed JLL's Hotels & Hospitality Group to sell the two sites, subject to existing franchise agreements with InterContinental Hotels Group.

 

Cairn Group acquired the hotels supported by Mincoffs solicitors and HSBC bank.

 

The group already owns and operates the nearby Station hotel, which is set to receive £5m worth of investment, and the Best Western Summerhill Hotel and Suites Aberdeen. In late 2016, it acquired five properties from the former Hotel Collection portfolio off a guide price of £75m.

 

Its total portfolio now includes 33 hotels and more than 30 bars and restaurants across the UK, and the group announced just yesterday that it is re-branded 10 of its historic hotel properties under the soft brand Cairn Collection.

 

Richard Warren, Cairn Group's finance director, said: "We know Aberdeen very well and have a strong existing relationship with IHG so we are confident we can turn around the fortune of the hotels as the regional market recovers. We're looking forward to doing more business here and investing in the economy."

 

Fraser added: "We are pleased to have secured the future of these two important Aberdeen hotels and the 125 associated jobs and wish Cairn Group every success for the future with the addition of these high quality assets to its portfolio."

 

Founded in 1963 by Roshan Lal Handa, Cairn Group is today run by his sons Arvan and Aran. In May 2016 it completed a £101m refinance deal with HSBC to fund its expansion.

 

Cairn Group launches soft brand of historic hotels in iconic locations >>

 

Cairn Group snaps up five properties from Hotel Collection for around £75m >>

 

Cairn Group secures £101m refinance deal with HSBC >>

 

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