Singapore-based hospitality group buys Exeter hotel for £19.4m
An Exeter has been bought by a Singapore-based hospitality group for £19.4m.
Hotel Indigo Exeter is an upscale lifestyle boutique hotel, with luxurious spa and gym facilities and two retail units.
It underwent an extensive conversion from a House of Fraser department store, with the hotel fully opening in October 2023.
CDL Hospitality Trusts has expanded its footprint in the UK with the acquisition of the hotel and two retail units.
The group, which is one of Asia’s leading hospitality trusts has made the purchase from Hotel Exe Limited, Plaza Properties (Holdings) Limited and Plaza Retail (Holdings) Limited.
Until 2033, the existing leases of the two retail units will continue on a fixed rent basis with tenant break options in June 2028 and March 2029 respectively.
The property is situated on the doorstep of the main retail high street, the Princesshay Shopping Centre.
The estimated total cost of the acquisition is approximately £21.5m which comprises the purchase price of £19.4m and transaction costs that amount to around £2m.
CBRE valued the property with the valuation comprises the hotel component at £15.5m and the retail component at £4m.
Vincent Yeo, chief executive of CDLHT’s Managers, said: “We are delighted to acquire a high quality asset with brand new interiors in the best location in the heart of Exeter. This is a continuation of our strategy to pursue accretive acquisitions that augment our income streams. This acquisition also increases our exposure to the burgeoning lifestyle hotel market.
“Hotel Indigo Exeter is a compelling opportunity to acquire a hotel with top tier design and build specifications, at a significant discount to the current replacement cost. There are areas we have identified in the operations where we could potentially drive better performance befitting of the quality of the product and its excellent location. In addition, there is a limited new supply of rooms within the city centre for the next few years.
“We believe our stapled securityholders will benefit from this opportune acquisition, especially at a point when the interest rate cycle is expected to turn.”
The UK HoldCo has entered into a franchise agreement with IHG Hotels Limited which will come into effect upon the completion of the acquisition.
The hotel will continue to operate under the “Hotel Indigo” brand name.
