Sandpiper Hotel in Chesterfield, Derbyshire, has been acquired by specialist hotel investment firm Shepherd Cox off an asking price of £1.35m.
The sale of the 46-bedroom hotel marks the 17th property to be added to the London-based investor Shepherd Cox’s portfolio, with the Sandpiper Hotel now being operated by Michels & Taylor.
Retiring owner David Cook built the hotel on Sheffield Road in 1975 and has since operated it as a family-run business with significant upgrades to facilities.
The Sandpiper has 46 bedrooms and three self-catering apartments, a 60-cover restaurant, conference and banqueting suites, a café lounge.
Neil Thomson, associate director, hotels agency at the Manchester office of Colliers International, secured the deal and said: “We have seen a huge increase in demand from private investment companies which view the leisure sector as a profitable alternative to traditional property investments.
“Hotels in particular offer a reasonably low risk option because they provide a relatively guaranteed rental yield, based on consistently high occupancy levels.
“To this end, we have noticed that hotels still attract interest with premium prices paid for high quality assets and particularly those that offer potential to improve the pattern of trade or a development opportunity.”
Shepherd Cox has acquired and developed a diverse group of assets, with a focus on the hotel sector in particular.
Nick Carlile of Shepherd Cox said: “We are very pleased to have acquired the Sandpiper Hotel as the 17th hotel in our portfolio. We have identified key areas to add value to the asset which will drive the business forward.”