Red Hall Hotel, Bury, Gtr Manchester sold to KS Hotels Ltd in deal brokered by Colliers International.
24th October 2019, 4:07 pm
Colliers International has sold the three-star 37-bedroom country hotel Red Hall Hotel in Bury, Greater Manchester, to KS Hotels Limited, a newly formed hotel company whose principals have been running a regional child care business and have now decided to branch out into the hotel sector.
Colliers acted on behalf of the owners Catford and Longford Ltd that also owns the four-star luxury Abbey House Hotel and Gardens in Cumbria, which has been unaffected by this disposal.
Red Hall Hotel is in a prominent and convenient location in Walmersley, Bury, with easy access to the M60 motorway, local conurbations and Bury town centre. The hotel business attracts a diverse range of business and in particular is a special wedding venue.
Facilities include The Oscars Restaurant and bar and excellent conference facilities including The Haydock Suite (up to 150 seats) and The Peel Suite (90 seats). The hotel also benefits from a detached bungalow used for staff accommodation.
The business has a solid trading base and the confidential sale of the entire share capital of the owning company completed at an undisclosed figure. The management team will remain in place.
The transaction was brokered by Julian Troup, head of UK hotels agency at Colliers International, who said: “Our instructions were to handle the sale in a confidential fashion and this was maintained up until after completion had been secured. We were able to introduce a diverse range of potential buyers, and this is yet another example of a hotel buyer coming from an alternative business sector.
“We are continuing to generate interest in hotel opportunities from a wide range of potential buyers, ranging from international investors attracted by weaker sterling and improving trading prospects, private buyers seeking the benefits of a lifestyle opportunity and corporate investors focused on favourable returns and real estate alternatives.”
Gourav Batra, one of the principals of KS Hotels, confirmed: “Red Hall is a very special place and now that it has happened, the plan is to build relationships and I am excited to peruse my passion in the hospitality sector. We would like it to be a smooth transition for the staff and for them to feel part of the process of change. The reason for me entering hotels is because I have been passionate about the hospitality sector and been looking for the right opportunity for a couple of years.”
The parent company behind KS Hotels owns a group of three nurseries, Ark and Les Enfants. The Ark Mytholmroyd was acquired in 2015, Les Enfants was acquired in 2016 and Ark Littleborough was established in 2017.
Legal advisors for the sellers of Red Hall Hotel were Napthens LLP, whilst the buyer was represented by Slater Heelis.
Keith Melling, head of corporate at Napthens, commented: “We are very pleased to have advised the seller on their sale of Red Hall. This was a great team effort and demonstrates our continued expertise in advising clients in the hotel and leisure sector.”
Sunil Mohindra, the partner who led the corporate team at Slater Heelis, said: “The Batra family have been clients of Slater Heelis for some years and we are delighted to have advised and supported them in their first acquisition in the hotel sector.”
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