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News Release

London

JLL and Christie & Co jointly advise on sale of hotel portfolio as appetite for regional hotel assets soars

Key regional portfolio deal post EU referendum result


London, 12th September 2016 - Joint agents Christie & Co and JLL have advised Dominvs Group on the sale of a portfolio of 3 branded regional UK hotels to a Joint Venture between Asian company Fico Corporation and Singha Estate. The Holiday Inn Darlington, Holiday Inn Dumfries and the Mercure Sheffield Parkway were sold for an undisclosed sum off a guide price of £12 million. JLL advised jointly on the off-market deal with Christie & Co.

The portfolio comprises a total of 229 guest bedrooms. The Mercure Sheffield Parkway and Holiday Inn Darlington are both freehold, whilst the Holiday Inn Dumfries is held on a long leasehold basis. The hotels are all situated within reach of the centres of Sheffield, Dumfries and Darlington and the surrounding business parks and local communities. Each of the hotels benefit from excellent transport connections across the UK.

The sale indicates the continued appetite from overseas capital to invest in the UK regional hotel market supporting recent evidence of overseas buyers seeing the combination of the fall in sterling and strong UK trading fundamentals as a compelling investment case.

The disposal by Dominvs Group forms part of their wider strategy to look for new opportunities to grow their established going concern portfolio and development pipeline.

Gavin Wright, Director in JLL’s Hotels & Hospitality Group, commented: “This is a significant deal post the EU referendum result. All three hotels benefit from being operated by well-known brands and offer stable and steady income.”

Jeremy Jones, Head of Hotels Brokerage for Christie & Co, added: “This portfolio sale follows on from a number of recent high profile sales processes. It is further evidence of the appetite from both domestic and overseas buyers for good quality regional UK hotel assets.”