In Southampton, England, property investment company International Hotel Group has completed the acquisition of Holiday Inn Express Southampton. The 176-room hotel was sold for £19 million.
IHL has also purchased a 100-bedroom Holiday Inn Express in Redditch for £7 million. Both hotels, acquired off-market, are freehold and have new 20-year franchise agreements with InterContinental Hotels Group.
The purchase price for the two hotels was partly settled through proceeds of £7 million private placement. The balance of the purchase price was funded through existing cash resources and senior bank debt funding at a loan.
Glasgow-based Redefine|BDL Hotels, the UK’s largest hotel management company with 65 properties in its portfolio, will manage the hotel. The company runs 19 Holiday Inn Express properties as well as hotels under the IHG, Hilton, Starwood, Accor, Marriott, Best Western and Wyndham brands.