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Macdonald raises cash to service refurbs and debt reduction by shedding two hotels

Macdonald Manchester

The Macdonald Manchester and Macdonald Holyrood hotels have been sold to private equity firm Zetland Capital Partners.

The value of the deal has not been disclosed, but Zetland said it was “one of the largest hotels transactions completed outside of London in 2021”.

Both hotels will be managed by Zetland’s JV partner, Hamilton Hotel Partners.

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Aaron Falls, chief financial officer at Macdonald Hotels & Resorts, said the business would use the proceeds of the sale to improve the rest of its portfolio.

“The successful sale of these well-known hotels is a major milestone in our strategic business plan, which will see a substantial reinvestment in upgrading the remainder of our 28-strong hotel portfolio and nine resorts, together with further debt reduction,” he explained.

Ahmed Hamdani, managing partner at Zetland Capital Partners, said: “Our strategy is to provide significant investment to refurbish and reposition these hotels. This acquisition aligns with our investment strategy to purchase and invest in well-located hotels across the UK, where we can materially enhance the product offering and benefit from the recovery of demand in the UK’s key cities.”

Macdonald Manchester has 338 bedrooms while Macdonald Holyrood has 156 bedrooms.

Tags : Macdonald Hotels & Resortsprivate equity
Andrew Seymour

The author Andrew Seymour

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