Liverpool hotel sold after bidding process opened at £12m
The Aloft Liverpool hotel, in Liverpool city centre, has been sold by joint agents Colliers and CBRE, on behalf of North John Street, to Fragrance Group, which is further expanding into the hotel market.
The purchase price has not been disclosed, but the property had a guide price of £12m.
Fragrance Group is currently undertaking the £40m conversion and restoration of Liverpool’s Grade II-listed Municipal Buildings into a luxury hotel.
Located in the heart of Liverpool city centre, the Aloft hotel asset was constructed around 1900 as the head office of the Royal Insurance Company and was subsequently sympathetically restored and converted to the 4-star globally branded 116-bedroom hotel.
The modern hotel also offers two substantial and well appointed bar and restaurants together with several meeting/conference suites.
Trade to year end 2019 showed a net turnover of £3.879m, operated under the Aloft franchise, part of Marriott Group. The hotel will continue to be operated by RBH Hospitality Management.
Julian Troup, head of hotels agency at Colliers, said: “Our instructions were to proceed in a confidential manner, and unsurprisingly significant interest was soon generated in this iconic hotel.
“The considerable level of interest follows a pattern of increasing demand for UK provincial hotels, particularly for global branded stock, and as a result a competitive bidding process was run amongst several overseas and domestic bidders.
“The sale of the Aloft adds to the high volume of our UK hotel sales that have been concluded during the year and demonstrates the increasing confidence from a diverse range of buyers.“
Martin Rogers of Global Hotels & Leisure Consultancy, who represents The Fragrance Group, said: “This was another strategic acquisition for The Fragrance Group in the UK.
“Mr Koh first visited Liverpool in 2018 and subsequently purchased The Municipal Building from Liverpool City, which we are now converting into a luxury 186-bedroom Hotel due to open in October next year.
“We are delighted to again work alongside RBH Hospitality Management who already operate six hotels in the UK for the group.”
Shaun Skidmore, senior director of operational real estate at CBRE, said: “We undertook a robust process utilising our UK and overseas platform to conclude the sale on behalf of North John Street. The acquisition of this prestigious asset by Fragrance Group demonstrates the continued appeal of Liverpool’s vibrant hospitality scene and will further enhance their growing portfolio.”