‘Exceptional price’ paid for Salford Quays hotel

THE Ramada Hotel in Salford Quays has been sold along with a site in Birmingham for more than £20m.

The assets have been sold by Shiva Hotels to MCAP Global Finance, a UK subsidiary of the New York investment adviser Marathon Asset Management.

The sale process was conducted by JLL’s Hotels & Hospitality Group and Savills  who said the assets had been sold “for in excess of the £21.5m guide price”.
 
The Salford hotel has 142 bedrooms along with a bar, restaurant, conferencing and business facilities. It is located on Trafford Road, close to the Metrolink,  MediaCityUK, Old Trafford football and cricket grounds and not far from the city centre.
 
Shiva Hotels, which is focusing on developments in central London, put the two hotels up for sale in February as they were deemed non-core within their portfolio.
 
The hotels have been sold with the opportunity to break the existing franchise agreement and reposition to an international quality four star brand. They will be managed by Valor Hospitality Limited, on behalf of MCAP Global Finance and re-branded.
 
Will Duffey, executive vice president atJLL’s Hotels & Hospitality Group, said: “The combination of the exceptionally strong regional UK hotel operating market, together with the operational flexibility of these assets, drove considerable appetite from investors.

“With over 80 parties signing the NDA to consider the opportunity, we were able to drive an exceptional price in excess of the £21.5m guide.”
 
Rob Stapleton, director in Savills’ Hotel Investment team added: “These two hotels were well received by the market and provide compelling investment opportunities; they are an excellent addition to Marathon’s growing UK portfolio.

“We are also delighted to have secured such strong results for our clients enabling them to further their own portfolio repositioning strategy.”