Singapore-based firm snaps up five Scottish hotels
A GLOBAL hotel chain has made a significant move into the Scottish market, with the purchase of five properties in two deals believed to total over £8.5 million.
MGM Muthu Hotels, which has 27 hotels worldwide, including properties in India, Cuba, Portugal, Spain and England, acquired the Highland Heritage group of four hotels, which was on the market for offers in excess of £4.5m; the deal came shortly after it acquired the Newton Hotel in Nairn, which carried an asking price of around £4m.
International investors have been attracted by weaker Sterling.
The Highland Heritage sale included two Tyndrum properties: the 96-bedroom Royal Hotel with its four acres of sheltered gardens, and the 132-room Ben Doran Hotel, which was designed by Highland Heritage founder Ian Cleaver, who built the dining rooms and lounges on the top floor to offer spectacular views; the 99-bedroom Dalmally Hotel in the heart of Strathorchy and The Alexandra Hotel in Oban, which has 66 bedrooms with a further 26 in planning.
Julian Troup, head of UK hotels agency at Colliers International, which facilitated both deals, said there was “considerable interest” in the businesses.
“We are seeing an emerging trend of increased demand for quality provincial hotel opportunities from a diverse buyer set, including international investors, who have been attracted by weaker Sterling and improving trading prospects,” said Troup.
“Since the beginning of 2016, over 15% of British hotel sales completed by Colliers were to international buyers.”