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News Release

London

Ramada hotels sold to MCAP Global Finance for over £21.5m


JLL’s Hotels & Hospitality Group and Savills have confirmed the sale of the Ramada Salford Quays and Ramada Birmingham Mailbox on behalf of Shiva Hotels for in excess of the £21.5m guide price.
 
The two hotels, comprising 142 and 90 bedrooms respectively, along with a bar, restaurant, conferencing and business facilities, have been sold to MCAP Global Finance, a UK subsidiary of the New York investment advisor Marathon Asset Management.
 
Both hotels occupy outstanding trading locations in two hotspots in the buoyant UK regional hotels market. The Ramada Salford Quays enjoys an excellent trading position close to MediaCityUK, Manchester City Centre and Old Trafford football and cricket grounds. The Ramada Mailbox in Birmingham is located within the landmark mixed-use Mailbox development, which is currently undergoing a modernisation programme in excess of £50 million.
 
Shiva Hotels, who have recently acquired a handful of impressive development sites in Central London, decided to market the properties 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.
 
Commenting on the sale Will Duffey, Executive Vice President in JLL’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.”
 
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