Pandox buys Manchester's Midland hotel for £115m
Pandox has entered into an agreement to acquire Manchester's Midland hotel for £115m from Aprirose.
The Swedish hotel investment company is partnering in the transaction with Fattal Hotels Group, which will operate the hotel under its Leonardo Hotels brand while retaining its iconic name.
Real estate investment company Aprirose bought the hotel in September 2017 as part of its acquisition of the 26-strong QHotels portfolio from Bain Capital Credit and Canyon Partners for £525m, in what was believed to be the biggest hotel deal of last year, with RBH appointed to manage the collection.
the third general manager appointed to the hotel in the space of two years.
The Midland is one of three hotels Aprirose has sold from the portfolio, including Mottram Hall, which was sold to Champneys, and Bridgewood Manor, which has been sold to an undisclosed buyer.
Aldwark Manor, Tankersley Manor and the Queens in Leeds are also on the market, leaving 20 hotels which it intends to invest in for the long-term and rebrand "where appropriate".
Pandox owns 143 hotels in Europe, including 20 freehold Jurys Inn properties, and the Hilton and Hilton Garden Inn at London Heathrow Airport. The group also announced its acquisition of the Radisson Blu Glasgow for £39m last week. Fattal operates 43 hotels in the UK and Ireland under the Leonardo and Jurys Inn brands.
There are seven Leonardo hotels in the UK, six in Scotland and one in London Heathrow, with 180 across major European cities. The brand entered the UK market in 2017 with the acquisition of the 230-bedroom London Heathrow Airport hotel and opened the 282-bedroom Leonardo Royal Hotel Edinburgh as its flagship hotel, following a £6.1m refurbishment from the former Premier Inn.
Last month Jurys Inn and Fattal Hotels revealed plans to invest approximately £32m in the redevelopment and expansion of the existing Jurys Inn Edinburgh hotel. The investment includes proposed plans to convert an adjacent listed building into a new 131-bedroom NYX hotel.
David Fattal, chief executive of Fattal Hotels Group, said: "This fantastic acquisition of Manchester's Midland hotel represents a huge step forward in our ambitious growth strategy in the UK. The reputation of the hotel speaks for itself and with this, we have the opportunity to further expand and strengthen the depth and breadth of our portfolio."
Jason Carruthers, managing director of Leonardo and Jurys Inn Hotels UK and Ireland, said: "We are delighted to have acquired the iconic Midland hotel, which is very much a flagship acquisition for the group."
Aprirose buys QHotels portfolio for £525m >>
Midland hotel appoints third general manager in two years >>
