Topland has acquired the parent company of Menzies Hotels from administration for close to £85 million (approx. €102.5 million) as part of an ambitious drive to build a £1bn (approx. €1.21 billion) hotel business.
Topland Group, led by Sol Zakay, is one of the largest privately owned international investment groups. It already owns a number of hotels including Bath’s Royal Crescent Hotel, the Brighton Metropole, the Glasgow Hilton and a portfolio of Thistle Hotels, six in central London and one in Edinburgh.
The company acquisition which saved 1,200 jobs completed on Friday and sees Topland acquire the Group including the 12 hotels and Bakum House the company’s freehold head office in Derby.
The hotel portfolio which is predominantly four star is spread across the UK, from Aberdeen to Bournemouth and ranges in size from the 18-bedrooms beautiful Flitwick Manor, Bedfordshire to Menzies Aberdeen Airport, which is one of Aberdeen’s largest hotels with 212 bedrooms.
The jewel in the crown is the world renowned Menzies, Stratford-upon-Avon which is a landmark Grade II* Jacobean style, 78 luxury bedrooms, country house hotel which is set in 157 acres of beautiful parkland and magnificent gardens, in the shadow of the Welcombe Hills. It boasts seven timeshare suites and apartments, award winning fine dining, a luxury spa and thriving health club and an 18-hole championship golf course.
Topland has appointed Bespoke Hotels, the UK’s largest operator of independent hotels to operate the group, taking its portfolio to over 100 and adding further geographical reach across the UK.
Topland’s chairman and chief executive Sol Zakay said: “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 £1bn hotel platform. The Group as a whole is entering a particularly active phase across a number of fronts including property investment and property lending.”
Topland managing director Mark Kingston said: “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.”
True to the Bespoke ethos, each property will retain its unique DNA but benefit from the expertise and quality of the Bespoke brand.
Haydn Fentum, CEO of Bespoke Hotels said: “We are delighted to be working with the many talented people within the existing Menzies portfolio and are looking forward to building a strong new relationship together.”
Law firm Osborne Clarke advised Topland.