The Duchy Hotel Group has sold three hotels in Torbay to Fairtree Capital.
The Headland Hotel in Torquay, The Palace Hotel and The Queens Hotel, both in Paignton, were sold for £12.5 million.
In total the hotels comprise 200 bedrooms and a range of bars, restaurants and spa facilities.
The three hotels have a strong local following and a healthy tourist trade, with wedding and dining facilities attracting good business.
The Fairtree Hospitality Real Estate Private Equity Fund was able to purchase the hotels, plus new acquisition Northfield Hotel, with £16m worth of financing from Natwest.
The move takes the Providence Hospitality portfolio up to six, with Cornish boutiques, The Old Quay House and The Rosevine part of the group.
Joe Bester, director of Providence Hospitality, said: “Providence prides itself on the highest quality of customer care, and we are keen to maintain our reputation in these new locations.”
Kobus Nel, director of Fairtree Capital, said: “The funding we received from NatWest has allowed us to expand our reach across the South West of England, and marks the beginning of an exciting journey.”
Elizabeth Stansfield, NatWest relationship manager, said: “Fairtree has ambitious plans to build a quality hotel portfolio throughout the UK and we have no doubt that these new acquisitions will benefit from their expertise. NatWest is confident that these hotels are in safe hands with Fairtree, and it was extremely rewarding to have been able to assist them in this venture.”
Martin Rogers, head of UK hotel transactions at Savills, comments on the sale: “The Duchy Hotels are three well established businesses in popular coastal locations. We are pleased to have secured the sale of these hotels for our client following a competitive but confidential marketing process.
“This represents yet another regional hotel purchase by an international investor, part of a growing number of global enquiries for regional assets procured through Savills global hotels team.”