Manchester’s Eclectic Hotel Group has been acquired by online beauty and wellbeing giant, The Hut Group, from founders and owner Eamonn and Sally O’Loughlin.
The acquisition sees two of the group’s hotels – King Street Townhouse and Great John Street Hotel – change ownership, while Eamonn and Sally will continue to own and manage Didsbury House Hotel and Eleven Didsbury Park, both of which were hived out the Eclectic Group prior to completion.
Originally built in 1872 for the Manchester Salford Trustees Bank, King Street Townhouse is a located within the upper King Street Conservation Area of Manchester city centre. The hotel opened at the end of 2015 and is home to 40 bedrooms, and a Tavern bar and restaurant.
Great John Street Hotel, an original Victorian school house, opened as a 30-bedroom luxury townhouse hotel in 2005 following a complete transformation.
King Street Townhouse also houses an infinity pool, private screening room and a wine cellar dining room.
Now a £10m refurbishment plan will be rolled out across both properties following the deal, which is rumoured to be worth £50m.
The acquisition by The Hut Group, which boasts brands such as ESPA, Mankind and Zavvi, will complement the company’s takeover of the Hale Country Club and Spa in July 2016.
Matthew Moulding, founder and chief executive officer of The Hut Group, said: “We are delighted with this recent acquisition, which comes at an exciting time for THG.
“As a fast-growing, brand-led business we are always looking to develop innovative approaches to drive greater engagement with our customers and today’s acquisition is testament to that strategy. With consumer behaviour continuing to evolve away from the traditional high street setting, these two highly prestige hotels will be instrumental in showcasing our leading Beauty and Wellbeing brands.”
Eamonn O’Loughlin, founder of the Eclectic Hotel Group, said: “Without the support and commitment of our many fantastic employees over the past 20 years none of this would have been possible. A massive thank you to them. While it has been a difficult decision for us to take, we feel both hotels are going into the best of hands with Matthew and his team and we are extremely proud of the portfolio that we have built over the years.”
THG recently announced newly-improved and extended Group banking facilities, in excess of $1bn (USD) to support major investments in beauty, technology and infrastructure, enabling the Group to continue to deliver on its growth plans.
The Hut Group was advised by KPMG for financial due diligence, Deloitte for tax due diligence and Gowling WLG for legals. The Vendors were advised by Convex Capital and Freeman Fisher.