Akkeron Hotels Group Limited (“Akkeron” or “the Group”) is pleased to announce that, through a subsidiary, it has today completed the acquisition of Forestdale Hotels Limited (“Forestdale”), which owns 18 hotels across England. This transaction will increase the number of Akkeron's hotels to 26 and will make it one of the largest regional hotel operators in the UK by number of hotels.

The acquisition has been funded with a mixture of equity, deferred consideration and a new £32 million 18-year credit facility provided by Lloyds Banking Group.

Forestdale is a privately-owned collection of three star hotels spread across England. The Group employs 900 people and has an annual turnover of c.£30m. The individual hotels range in size from 34 bedrooms to 145 bedrooms. The hotels are located in both key business destinations, such as Cambridge, Bristol, Southampton and Winchester, and attractive leisure destinations including the New Forest, Bath and the Cotswolds.

 

Akkeron will invest in all the Forestdale hotels to improve the quality of their offerings to customers and the Group will make significant investment in a number of the hotels in particular to reposition them in their local markets. Akkeron will also make large investments in people, training and systems to ensure that the Group is well-placed to provide its customers with a first-class service. It is also Akkeron's intention to develop and expand the Forestdale brand.

The Flodigarry Country House Hotel, which is owned personally by Robin Collins (Forestdale's principal shareholder) and is separate from Forestdale, will be retained by him.

In December 2009 Akkeron announced its first acquisition of hotel assets, a group of eight hotels from Mulbourn Hotels Limited trading as Folio Hotels. The acquisition included Makeney Hall, Belper, Derbyshire; The Yorkshire Hotel, Harrogate; The Caledonian Hotel, Oban; the Richmond Gate Hotel and the Cedars Health and Leisure Club, Richmond-upon-Thames; and the Harte & Garter Hotel & Spa in Windsor. Over the past year Akkeron has continued to invest in these hotels to maintain a group of modern, attractive and well managed hotels, which have been rebranded and are now trading under the Akkeron name.

 

Akkeron wishes to continue to grow its business and hopes to form further sustainable partnerships with banks, landlords, investors and other stakeholders. Akkeron's interest in hotels will continue to comprise a blend of freeholds, leases and management contracts.

 

Commenting on the acquisition, Matthew Welbourn, MD of Akkeron Hotels, said:

“We are delighted to be acquiring this group of attractive, well located and popular hotels that will now form an important part of our portfolio. Whilst the trading outlook for regional hotel operators in the UK remains challenging, we continue to see exciting opportunities to acquire high quality hotel assets that will benefit from capital investment and the operational expertise that an operator of scale can provide, and we expect to make further announcements over the next year”.

 

 

Nick Greaves

Tel: 07825 277 120

Matthew Welbourn

Tel: 07771 756 300

Ben Foster, Marc Cohen

Tel: 020 7831 3113

NOTES TO EDITORS

Information on Akkeron Hotels Group Limited

 

Akkeron Hotels is a growing UK focussed mid-market and regional hotel business comprising 3* and 4* hotels. The Company intends to build a portfolio of up to 150 regional hotels and it is expected that Akkeron's interests in these will comprise a blend of freehold ownerships, leases and management contracts. Following the acquisition of Forestdale, Akkeron Hotels’ portfolio consists of 26 hotels, employing 1,400 people, making it one of the largest regional hotel operators in the UK.

 

 

Akkeron Group was formed in 2008 by James Brent, previously Global Head of Real Estate & Lodging Investment Banking at Citigroup, with a focus on real estate-based operational businesses.

Akkeron’s key areas of activity include:

—  Management-intensive real estate portfolios e.g. hotels  
—  Urban regeneration focused on the South and South West of the UK  
—  Large-scale agriculture in emerging markets.

Akkeron pursues a partnership approach to its investment programme, leveraging its skills across real estate, development, financing and corporate finance.