Principal Hotel Company says it is on track to make 20 ‘non-core’ hotel disposals by year-end 2017 for proceeds of £200m. Seventeen of these hotel properties have already been exchanged or completed sale, the company added.
The disposal programme, the company said, is a key part of a strategy to focus on its prominent city hotels under the ‘PRINCIPAL’ brand and its leading country estate hotels and modern events spaces, recently relaunched under the ‘De Vere’ brand.
The hotels already sold include Gorse Hill near Woking, Kenwood Hall in Sheffield, New Place in Southampton, The Oxford Witney Hotel and Warbrook House in Hampshire.
Two of the three remaining hotels to be sold are currently being marketed by Christie & Co (Theobalds Estate in Cheshunt, pictured, and Wychwood Park in Crewe).
Principal Hotel Company CEO, Tony Troy, commented: “The disposal of our non-core hotels and venues was a key part of the shareholders’ strategy to focus the company on transforming its larger properties into what we now believe is the finest collection of UK hotels ever to be assembled under one group. It also enables the management team to concentrate on delivering a best in class service offering in the newly renovated core estate under the two brands: PRINCIPAL and De Vere.”
Troy added that his team would continue trying to acquire and develop landmark hotels in strategic city centre locations, such as The Grand Hotel in Birmingham and Martins Bank in Liverpool. “These developments will take the total capital investment across the Company to over £250m once complete,” he said.
James Burrell, CFO of The Principal Hotel Company, added: “Proceeds from our disposals are being re-invested into the prominent city hotel renovations”.
Since acquiring Principal Hayley, De Vere Venues and Four Pillars in separate transactions during 2013 and 2014, Starwood Capital Group has combined these three brands under one umbrella: The Principal Hotel Company.
