Investment firm snaps up York hotel in multi-million-pound deal

An investment firm has snapped up a 148-bedroom hotel in York city centre for £15m.

Rockspring Property Investment Managers has acquired the Holiday Inn, York City, which is leased on a 50-year term by Kew Green – one of the leading hotel operators in the UK who fully renovated the hotel’s bedrooms between 2015 and 2017.

Rockspring said: “Due to its popularity as a tourist destination and the demand / supply imbalance of hotel accommodation, York has the fourth highest RevPar in the UK. The acquisition accords with the funds strategy of reducing risk with a long lease, good tenant and strong location, whilst gaining access to an ‘alternative’ sector.”

Jamie Younger, head of UK Transactions at Rockspring, said: “These transactions demonstrate our highly selective approach to stock picking, which is underpinned by in depth research on the fundamentals of each asset. Each of the acquisitions is located in performing locations with income growth potential, either through asset management or performance linked, long-term leases.”