Sale Of An Established Hospitality Chain
Company Background
We were engaged by a family office investor to help them acquire a chain of hotels and public houses. Over a period of three yearswe put together a chain of 18 different properties across the north of England and Scotland.
Challenge
Acquisitions range from smaller chains of 2 to 3 properties down to individual acquisitions of single hotels. The average sized public house was in the £3-4 million range whilst the average sized hotel was in the £7-8m range.
The individual properties were not branded together but were kept as individual entities giving them an independent boutique feel while still allowing a group structure and cost base that took advantage of the economies of scale.
Our Approach
After several years of acquiring these properties on behalf of the family office investor we were tasked with packaging the whole for sale to achieve the best exit. In order toachieve the best outcome some of the hotels were packaged together as a small boutique chain and several of the public houses were leased back to the management teams and we sold the freeholds as investment property.
Outcome
Overallour investors made significant returns across the investment with the total exit value across the properties being in excess of£45m with an effective investment return of well over £14m in three years. There were also significant profits across the business and dividend distribution during this time. And they retained four of the properties as long term investments with management teams leasing the business from the investor.
Client Testimonial:
Enterprise Value: £45m
Buyer: Family Office Investor
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