Property News Colliers International acquire Forestdale for Akkeron

Akkeron Hotels Group Limited

Akkeron Hotels Group Limited, advised by Colliers International is pleased to announce that, through a subsidiary, it has completed the acquisition of Forestdale Hotels Limited ("Forestdale"), which owns 18 hotels across England. This transaction will increase the number of Akkeron's hotels to 26 and will make it one of the largest regional hotel operators in the UK by number of hotels. The acquisition, undertaken by Colliers’ Hotels team, has been funded with a mixture of equity, deferred consideration and a new £32 million 18-year credit facility provided by Lloyds Banking Group.

Forestdale is a privately-owned collection of three star hotels spread across England. The Group employs 900 people and has an annual turnover of c.£30m. The individual hotels range in size from 34 bedrooms to 145 bedrooms. The hotels are located in both key business destinations, such as Cambridge, Bristol, Southampton and Winchester, and attractive leisure destinations including the New Forest, Bath and the Cotswolds.

Akkeron will invest in all the Forestdale hotels to improve the quality of their offerings to customers and the Group will make significant investment in a number of the hotels in particular to reposition them in their local markets.

Over the past year Akkeron has continued to invest in these hotels to maintain a group of modern, attractive and well managed hotels, which have been rebranded and are now trading under the Akkeron name.

Commenting on the acquisition, James Brent, Chairman of Akkeron, said:

"We are delighted to be acquiring this group of attractive, well located and popular hotels that will now form an important part of our portfolio. Robin Collins has built a fantastic group of hotels and we are looking forward to building on his efforts to take the business forward. Whilst the trading outlook for regional hotel operators in the UK remains challenging, we continue to see exciting opportunities to acquire high quality hotel assets that will benefit from capital investment and the operational expertise that an operator of scale can provide, and we expect to make further announcements over the next year.”