The Ramada Salford Quays hotel has been sold to MCAP Global Finance in a joint deal worth over £21.5 million.
MCAP are the London-based arm of US investment advisor Marathon Asset Management.
Owners Shiva Hotels put up for sale the 142-bed hotel on Trafford Road in Salford in February 2015 along with the 90-bed Ramada Birmingham Mailbox.
It’s the last multi-million pound hotel acquisition by MCAP, which bought up Hotel Indigo in Liverpool last month for a price in excess of £11 million, and acquired hotel chain QMH Group in 2014.
JLL and Savills were appointed joint agents for the property.
JLL called the deal with MCAP “an exceptional price”, driven by strong interest from over 80 parties who signed a non-disclosure agreement to consider the sale.
Shiva, which operated both hotels under flexible franchise agreements from Wyndham deemed the two properties “non-core within their portfolio” after buying up a number of development sites in central London.
Ramada Salford Quays will be repositioned as an international quality four-star brand, along the lines of Hilton’s DoubleTree, and has been sold with the opportunity to break the existing franchise agreement.
It will be rebranded and managed by hotel management company Valor Hospitality Limited.
Will Duffey, Executive Vice President in JLL’s Hotels & Hospitality Group, said: “The combination of the exceptionally strong regional UK hotel operating market, together with the operational flexibility of these assets, drove considerable appetite from investors.
“With over 80 parties signing the NDA to consider the opportunity, we were able to drive an exceptional price in excess of the £21.5m guide.”
Rob Stapleton, Director in Savills’ Hotel Investment team added: “These two hotels were well received by the market and provide compelling investment opportunities; they are an excellent addition to Marathon’s growing UK portfolio.
“We are also delighted to have secured such strong results for our clients enabling them to further their own portfolio repositioning strategy.”
