Hallmark goes fourth with acquisitions
Article Date: Apr 16 2008Hallmark Hotel Group has continued its buy-and-build strategy by spending £25 million on buying four properties. The group, which was established last year to create a chain of regional hotels through acquisition, now owns five properties after adding sites in Derby, Carlisle and Bournemouth to its portfolio.
It bought the Lakes Court Hotel, a 70-bedroom Victorian property in Carlisle, and Durley Hall Hotel and Spa in Bournemouth. It also acquired the Midland Hotel and the 88-bedroom European Inn, both in Derby.
The hotels were all acquired from private owners and take Hallmark’s spending to some £35 million after it bought the Belfry House Hotel in Cheshire last October, which is being refurbished.
The deals were funded by Zeus Private Equity, with senior debt provided by Allied Irish Bank in Manchester.
Hallmark’s strategy is to identify underperforming hotels and convert them into four-star properties. It expects to make further acquisitions later this year.
Zeus’ investment was led by managing partner Gary Tipper, who has a seat on Hallmark’s board.
