Bowling Green Asset Management has acquired its second branded hotel of the year, acquiring the 103-room Holiday Inn Salisbury-Stonehenge in Wiltshire, near the Stonehenge UNESCO World Heritage site, from Fiesta Enterprises for £12.5 million. Colliers International's Hotels Agency brokered the deal.
"This hotel has been a target of ours for some time, so we are pleased to complete the purchase. The hotel has been run on a sound footing previously and we have no intention of upsetting the applecart. Many of the staff have been with the hotel for a number of years and we hope they remain with us for the foreseeable future. We will be looking to expand the hotel offerings, along with continuing the hunt for potential acquisitions," Jamie Levy and Nicholas Rubin, BGAM directors, said in a statement.
Julian Troup, head of hotels agency, and Paul Barrasford, director at Colliers International, led the hotel sale. "Our instructions were to handle the marketing in a confidential fashion. Having approached a 'target list of overseas and domestic potential buyers, a good deal of interest was expressed in this outstanding opportunity," Troup explained in a statement.
Demand for UK provincial hotels is growing, particularly for global branded hotels. There is also a growing demand for quality hotel opportunities outside of main cities from various buyers, including international investors and private buyers. While international investors are attracted to the weaker sterling, private buyers are drawn to the benefits of a lifestyle opportunity. Meanwhile, corporate investors are attracted to favorable returns and real estate alternatives. Since early 2016, Colliers completed more than 20 percent of UK hotel sales to international buyers.