Singapore's Fragrance Group buys Blackpool's Imperial Hotel

Singapore’s Fragrance Group——which purchased a private island for resort development and announced two new hotels for Hobart, Tasmania last year—has completed the acquisition of The Imperial Hotel in the UK’s resort city of Blackpool for £12.8 million.

The purchase was made through the company’s Fragrance UK-Blackpool subsidiary, and was financed with internal funds. The deal is expected to “contribute positively” to the company’s current financial year, which ends in December, it said.

The 150-year-old, 189-guestroom hotel has a freehold tenure—the legal right to own a piece of property without any limitations on its use.

The Imperial Hotel was included in a portfolio sale announced nearly a year ago: The Hotel Collection, owned by private equity firm Lone Star, put 10 UK hotels known as Project Solstice on the market for more than £130 million in April. The full portfolio reportedly generated total revenues of £48 million in 2015.

Fragrance’s shares reportedly dropped 1.2 percent to 17 cents on Tuesday, giving it a market capitalization of about S$1.14 billion. Shares in the property firm have grown by 6.3 percent this year, compared to the 7.4 percent gain in the benchmark Straits Times Index.