Seven NW hotels included in big sell-off by Scottish parent
Seven North West hotels are part of a 27-strong portfolio being offloaded by its Scottish parent.
Macdonald Hotels, based in Bathgate, West Lothian, is selling its properties to a private equity player in a deal which is expected to clear its bank debt of nearly £190m.
Many of the properties are in Scotland, but seven are situated across the North West, including: Macdonald New Blossoms, Chester; Macdonald Portal Hotel, Tarporley; Macdonald Craxton Wood, Chester; Macdonald Manchester Hotel, Manchester; Macdonald Leeming House Hotel, Windermere; Macdonald Tickled Trout Hotel, Preston; and Macdonald Kilhey Court Hotel, Wigan.
The sale to a private equity and real estate investor will leave the group with 11 hotel properties in the UK and Spain.
The group, run by founder and 72-year-old industry veteran Donald Macdonald and his family, had total debts in excess of £700m more than 10 years ago.
Macdonald recently posted pre-tax losses of £1.1m.
Deputy chairman and managing director Gordon Fraser said the group’s ability to invest had been constrained in the wake of the global financial crisis, which took hold in 2008, as it cut its debt.
He said: “Since 2008, we have not had a capital expenditure facility from the bank. Any investment we have had in the properties, we have had to pay for that out of our operating cash flow.”
Donald Macdonald said: “The board carefully weighed up all the proposals and unanimously agreed that selling the majority of the hotels to a new, well-funded investor will enable them to realise their full potential, both as hotels and in terms of the significant development potential on several of the sites.
“This is excellent news for the 2,200 loyal employees based at these hotels, their 190 colleagues in our central support team and also for our valued customers and suppliers.”
The price being paid for the 27 hotels is not being revealed.
Macdonald Hotels said its bank debt would be below £190m next month.
It noted the deal’s completion would enable it to repay in full its current Bank of Scotland debt and invest in its remaining properties, signalling proceeds in excess of the bank debt level.
