Hospitality firm secures £10m investment to accelerate expansion
HOSPITALITY firm The Coaching Inn Group, part owned by Tadcaster-based property and investment company Commer Group, has secured a further £10m investment from the Business Growth Fund (BGF) to support a £50m expansion across the UK.
The business, which this weekend was named one of The Sunday Times Virgin Fast Track 100 ‘Ones To Watch’, currently operates 12 coaching inns and will use the capital to increase the size of its portfolio to 25 properties by March 2019.
The £10m injection follows an initial investment of £4.5m from BGF in March 2015, which helped the group to purchase and operate an additional six properties, including three landmark Yorkshire inns in Helmsley, Richmond and Thirsk.
The group has doubled its EBITDA in the first six months of this year and reported a 33% increase in sales. With three acquisitions already in the pipeline and due for completion by early next year or before, the group says it is in a strong position to achieve its goal of 25 properties within the next two years.
The Coaching Inn Group founder and CEO Kevin Charity said: “Having set a target of doubling the estate in five years, we’ve almost hit that target in less than two years. This latest investment from BGF is testament to the strength of our business model and we’ve now set even more ambitious growth targets. The investment from BGF means that we are on track to achieve our growth plan without financial distractions or cash flow restrictions.
“We now have a tried and tested formula and ultimately our goal is to acquire the right properties in the best locations, and sensitively restore them in line with the character of their local surroundings.”
The Coaching Inn Group has 12 historic venues across the UK.
Mark Freer of BGF said: “The Coaching Inn Group continues to go from strength to strength. Kevin and his management team have ambitious plans for the business. That is something we are keen to support and we are delighted that the additional funding we have provided today will help accelerate the growth of the business even further.”
The investment was led for BGF by Mark Freer and James Syrotiuk.
The advisers to the transaction were:
The Coaching Inn Group
Irwin Mitchell – Legal advice
For BGF
Browne Jacobson – Legal advice
Keith Fleming – Financial Due Diligence
