Topland Group, London, announced on Monday that it bought the parent company of Menzies Hotels out of administration for about £85 million (US$139 million).
The purchase includes 12 properties of the 15-hotel Menzies Hotels, Mickleover, England, portfolio located in England and Scotland. In May, Lloyds Banking Group appointed KPMG’s David Crawshaw and Rob Croxen as joint administrators of Cordial Hotels and Cordial Hotels Acquisitions, which had previously taken Menzies out of administration in 2011 as part of a management buyout.
“This acquisition was an exceptional opportunity to acquire a profitable, highly rated hotel group which provides an excellent additional platform for us to drive forward our strategy of building a £1 billion (US$1.6 billion) hotel platform,” said Sol Zakay, Topland’s chairman and CEO.
Topland has appointed Bespoke Hotels, Warrington, England, to manage the 12 hotels.
“This acquisition represents a major commitment to dramatically increase our exposure to the hotel sector. We believe there are real opportunities to grow the EBITA of this group which we believe was under-marketed and will benefit from economies of scale which we can provide. The portfolio has a great geographical spread and further highlights not only our belief in the recovery of the hotel market but also our commitment to regional markets too,” said Mark Kingston, Topland managing director.
The three remaining leasehold properties in the Menzies portfolio have been closed.