Investment company takes stake in expanding hotel group
PROPERTY and investment company Commer Group has taken a 20% stake in an independent hotel group, which is set to double the size of its estate.
The deal, for an undisclosed sum, sees Tadcaster-based Commer’s managing director Edward join the Bulldog Hotel Group’s board as finance director and creates a platform for an acquisition programme which will see the hotel group invest £20m over the next five years in a doubling of the estate.
“We’ve built our property and leisure businesses by carefully choosing the right acquisitions and by backing the best people,” said Mr Walsh. “Kevin Charity at Bulldog Hotel Group, is one of the best independent operators of regional hotels in the country, so this investment is a natural development for us. We have an ambitious acquisition and expansion programme and are already in detailed discussions with funding providers as part of that process.”
The Bulldog Hotel Group owns the Old Bridge in Holmfirth and has other well-known hotels in Leicestershire, Lincolnshire, Northamptonshire, Gloucestershire and County Durham. It has built a strong reputation in the industry for transforming underperforming establishments into busy and profitable businesses.
The £40m Commer Group has already invested more than £2m in the business, with further capital available for acquisitions. The Tadcaster business specialises in the hotel, licensed and leisure sectors and was established by Edward Walsh’s late father Jim Walsh in 1989.
Managing director Kevin Charity said: “We’re delighted Edward is joining the Bulldog board to lead our investment programme. His extensive financial experience as an investment banker and business knowledge and contacts through the Commer Group, will help us realise our ambitious growth plans.
“Our successful business model is based on selecting high quality coaching inns and revitalising their offer across food, drink and accommodation. While many individual hotels can only afford to focus on just one area, we have the resources to ensure excellence across all three income streams and give guests and customers an all-round better experience. This is proving attractive to couples and families for holiday breaks, but also to the corporate market for meetings and conferences.
“The regional hotel market, and particularly the coaching inn sector, remains highly fragmented and with this investment we have never been better placed to take advantage of the acquisition opportunities that we continue to see and allows us to grow the estate from seven to fifteen by 2020.”
