Sandpiper Hotel in Chesterfield, Derbyshire, has been acquired from an asking price of £1.35m by specialist hotel investment firm Shepherd Cox in a deal brokered by real estate advisors Colliers International.
Acting on behalf of retiring owner David Cook, Colliers sold the property on Sheffield Road to the London-based investor specialising in the hotel, leisure, healthcare and residential sectors with the hotel to be operated by Michels & Taylor, the international hotel asset management company.
Mr Cook built the hotel on Sheffield Road, Chesterfield in 1975 and has since operated it as a family-run business with significant upgrades to facilities.
The Sandpiper, located close to the M1 motorway, has 46 en-suite bedrooms and three self-catering apartments, a restaurant that can sit 60 people, conference and banqueting suites, a café lounge, award-winning restaurant and parking.
Neil Thomson, associate director, hotels agency at the Manchester office of Colliers International, secured the deal and said: “We have seen a huge increase in demand from private investment companies which view the leisure sector as a profitable alternative to traditional property investments.
“Hotels in particular offer a reasonably low risk option because they provide a relatively guaranteed rental yield, based on consistently high occupancy levels.
“To this end, we have noticed that hotels still attract interest with premium prices paid for high quality assets and particularly those that offer potential to improve the pattern of trade or a development opportunity.”
Shepherd Cox has acquired and developed a diverse group of assets, with a focus on the hotel sector in particular.
Nick Carlile of Shepherd Cox said: “We are very pleased to have acquired the Sandpiper Hotel as the 17th hotel in our portfolio. We have identified key areas to add value to the asset which will drive the business forward.”