Menzies raises £10m for growth
MENZIES Hotels & Leisure (MHL), the Derbyshire-based company set up two yearsago, has bought its third hotel - the 25-bedroom New England Hotel in Boston, Lincolnshire.
The hotel, which was acquired from Forte for an undisclosed sum, will be the subject of a major refurbishment, project managed by BM Trevellion Interiors.
Nick Menzies, chairman and chief executive of MHL,is also negotiating a line of credit and equity with investors to fund the acquisition of another 12-15 mid-market hotels.
Mr Menzies, who worked with Robert Peel at Mount Charlotte Thistle for 12 years before going it alone with MHL two years ago, said the funding package of £4m of venture capital and £6m long term debt should be completed by next month.
He expects to draw down the funds in three branches of around £3m, depending on the purchase prices agreed, the plan being to cherry pick selected properties rather than buying a group.
"I want to be able to identify individual properties. Therefore, it is much more difficult to put together a funding deal," he said.
An exit route for the venture capital investors will be provided by disposing of those properties where MHL has lifted profits.
"I have no intention of floating," Mr Menzies told Caterer. "I don't want hundreds of shareholders. We'll end up, after buying and disposing hotels, with long term debt. Building up a chain with critical mass is not so important."
