Akkeron Hotels Group Limited (“Akkeron” or “the Group”) is pleased to announce that, it has today completed the acquisition of 8 hotels from the administrators (John Kelly and Nigel of Begbies Traynor) of Butterfly Hotels Limited and Crowne Hotels Limited. This transaction will increase the number of hotels in the Group to 34, employing 1,630 people and with a combined annual turnover of c£57m, cementing its position as one of the largest regional hotel operators in the UK. The acquisition will be funded with a combination of existing resources and a new 15-year credit facility provided.

 

The hotels, trading under the Best Western, Ramada and Holiday Inn Express brands, include a mix of leasehold, freehold and operating management agreements. The leases on six of the hotels have been assigned to the Group with deeds of variation which bring their terms into line with the current market. The hotels are a collection of regional three star and budget hotels that in total employ over 200 people with a combined annual turnover of c£10m.
 

All the hotels will continue to operate as usual, with minimal changes made. Akkeron is well-capitalised, with long term financing in place and significant management expertise. The Group has plans to grow its business into the leading provincial UK hotel business with a portfolio of up to 150 regional hotels across the UK. This will be achieved by forming sustainable partnerships with banks, leaseholders, local communities, local suppliers and other stakeholders.

 

Today’s acquisition follows the announcement in December that Akkeron had acquired Forestdale Hotels Limited (“Forestdale”), a group of 18 three star regional hotels. As with the acquisitions from Mulbourn Hotels Limited trading as Folio Hotels and Forestdale, Akkeron will invest in all the Butterfly hotels to improve the quality of their offerings to customers. 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.

 

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

 

“The Butterfly acquisition provides the initial phase of the third leg of our midscale business, bringing to the Group a portfolio of hotels that trade under international brands. Our strategy is to develop our third party branded business, alongside our own 4* 'light' brand (Akkeron Hotels) and leisure brand (Forestdale). Butterfly was an unfortunate victim of the recession, but I am pleased that we were able to bring the hotels out of administration, thereby safe-guarding hundreds of jobs as well as the interests of other key stakeholders. I am delighted to welcome our new colleagues to the Group and I look forward to working with them in the development of a best in class UK hotel business”.

 

The locations of the hotels that are part of this acquisition are:

 

Holiday Inn Express (Banbury)

Ramada (Bury St Edmunds)

Ramada (Colchester)

Best Western Rockingham Forest (Corby)

Best Western Himley Hotel (Dudley)

Ramada (Kings Lynn)

Ramada (Peterborough)

Ramada Cromwell (Stevenage)

For further information please contact:

Akkeron Group Nick Greaves Tel: 07825 277 120   Matthew Welbourn Tel: 07771 756 300
Financial Dynamics 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 Butterfly, Akkeron Hotels’ portfolio consists of 34 hotels, employing 1,630 people, with a combined turnover of c£57m making it one of the largest regional hotel operators in the UK.

 

Information on Akkeron Group LLP

 

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.