Redefine International Acquires Earls Court Holiday Inn Express

Posted On Tuesday, 12 February 2013 11:43 Published by eProp Commercial Property News
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Diversified income focused property firm, Redefine International, announced in 2012 that it has through its 71% held subsidiary Redefine Hotel Holdings (RHH) Limited, acquired  60% of the issued shares in BNRI Earls Court Limitedfrom Camden Lock and Earls Court LLP for the purchase price of GBPounds 8.7 million. The purchase price plus transaction costs of £0.4 million reflected a net initial yield of 7.5% and was funded by the Company and its co-investors in RHH on a pro-rata basis.

Michael WattersBNRI owns the 150 bedroom Holiday Inn Express Hotel in Earls Court, London valued at BPounds27.0 million.

This follows on the heels of Redefine’s acquisition of the Caversham Hotel Thames Side Promenade Reading and the leasehold on which the hotel was situated for a purchase price of GBP12.75 million. Redefine Hotels Reading Limited concluded an agreement with Pedersen (UK) Limited.

Holiday Inn Express is well located close to the Earls Court Exhibition Centre and Arena and the Olympia Exhibition Centre. Both these facilities are all-year-round honey pots for local and international tourists requiring the type of accommodation the Holiday Inn Express offers.

The area is earmarked for large-scale redevelopment including several thousand new homes and a potential new International Convention Centre. This process is expected to take several years and is likely to boost the occupancy of the Hotel during the development phase,not to mention leaving the hotel well placed for a future boom expected upon completion.

The hotel is held under freehold title and is subject to a franchise agreement with IHG Hotels Limited until 2023. There are two meeting rooms for up to 50 delegates, a restaurant/bar and 16 car parking spaces. The Hotel is in excellent condition and has been well maintained.

The Hotel formed part of the Splendid Hotel Portfolio comprising seven hotels that were originally co-owned by Bashir Nathoo, five of which were acquired by the Group in December 2010.

Redefine International Hotels Limited has been involved in the operational management of the Hotel since December 2010 and therefore has a good working knowledge of the business prior to the Group's investment. The Hotel will complement the Group’s existing portfolio of six high quality hotels.

Mike Walters of Redefine told a press conference: “During our recent £127.5 million capital raise we stated that we had identified a strong pipeline of acquisition opportunities, and this transaction represents the first of these. The limited service hotel sector continues to thrive in pockets of London and, together with our in-depth knowledge of the performance of this particular hotel and our belief in the potential of this sector, we believe this transaction illustrates a compelling investment opportunity which will deliver a high quality income to our investors.”

Last modified on Friday, 18 April 2014 12:53

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