The Roxburghe Hotel and golf course near Kelso in the Scottish Borders has been sold to 12.18 Investment Management GmbH off a guide price of £3.25m.
The Düsseldorf-based project developer and hotel operator plans to reopen the hotel and golf course in 2019 following a £30m refurbishment programme to operate as SCHLOSS Roxburghe.
The four-star 19th century property currently comprises 22 rooms, a restaurant and bar that 12.18. aims to add a separate extension to feature 57 rooms as well as a spa and meeting space.
In addition, 60 lodges will be built on the surrounding estate and will be made available for sale to private investors through a sale-and lease-back concept.
The Duke of Roxburghe commented: “The plans which the new owners have for major investment in the Roxburghe are very exciting indeed. We wish 12.18. every success with the new development and the operation in future and I have no doubt that it will become one of the most outstanding resort destinations in Scotland. I would like to pay particular thanks to all the staff who have worked with great dedication to deliver exceptional standards of service to our guests over the years.”
Steven Fyfe, associate director in the hotels agency team at Savills, added: “It was important we secured a buyer who could invest in the future of the hotel and golf course while respecting and maintaining the Roxburghe’s Scottish heritage. As one of Scotland’s most charming country house hotels, the sale of the Roxburghe attracted very strong interest from buyers, both from the UK and from abroad.”
According to Savills research, investment activity in the Scottish hotels market in the first quarter of 2018 totalled £105.85m – an increase of 90.3% year-on-year and exceeding the five year average by 63.1%.