Fri, 24 Sep 2021 | BUSINESS SALE
AGO Hotels has acquired the freehold interest in two Ibis hotels in South Wales, expanding its UK portfolio to 12 sites. The value of the acquisitions was not disclosed and the two hotels will continue to operate under their current brands post-acquisition, while switching to AGO’s hybrid lease model.
AGO Hotels launched last year, with its hybrid lease model offering hotel landlords the combination of guaranteed rent and participation in profits. Since launching, the group has acquired hotels in Dundee, Peterhead Glasgow, Bromley, Bromsgrove, Burton-upon-Trent, Lancaster, Portishead and Stansted.
The acquisitions in South Wales come at a resurgent time for the hotel sector as business travel resumes and holidaymakers increasingly turn to UK-based “staycations” as a result of COVID-19-related travel restrictions. These factors, along with the financial hit that many operators suffered during COVID-19 lockdowns, is spurring dealmaking activity in the sector.
Reflecting this resurgence, AGO has revealed that it saw a 29.5 per cent increase in occupancy in Scotland and England during July, followed by a 17 per cent increase in August.
The acquisitions of Ibis’s 99-bedroom Swansea hotel and its 104-bedroom budget location in Newport mark the company’s entrance into the Welsh market and increase the number of rooms in its portfolio by close to 40 per cent.
AGO Hotels co-founder Lionel Benjamin said: “We are delighted to announce the addition of these outstanding economy hotels in South Wales. Since launching last year, we have experienced rapid growth with 12 hotels now choosing to switch to our platform. We are expecting this number to continue to grow significantly over the next 12 months, as with the addition of more comfortable and affordable hotels across the UK.”
Benjamin’s fellow AGO co-founder Viv Watts added: “We are continuing to see widespread interest in AGO’s hybrid lease structure which benefits landlords both in valuation and yield terms, and we are looking forward to growing into new communities and engaging new asset owners with our distinctive offer of downside protection and genuine profit participation, having paid rents in full throughout the lockdown.”
Find businesses for sale here.
If you are looking for an exit, we can help!
On the market is an independently spirited entrepreneurial entertainment company with an ‘artist first’ focus. The entertainment company comprises a group of highly-profitable businesses within the music industry including a record label, management...
FREEHOLD
An opportunity exists to invest in an exciting Specialist Tour Operator which supplies tour operator services to UK inbound tourist from Mainland China. The Company arranges hotels, travel and tours in London and other UK destinations to foreign cust...
LEASEHOLD
Presenting a comprehensively refurbished 27 room boutique hotel and restaurant, boasting high specification throughout, in a prime town centre position, substantial profits, and fully managed.
FREEHOLD
06
|
Sep
|
Surrey Victorian country manor hotel on the market for £8m | COMMERCIAL PROPERTY
Stanhill Court Hotel, a Victorian Country Manor House hotel ...
06
|
Sep
|
Livingstone-based civil engineering firm falls into administration | ADMINISTRATION
Glenevin Limited, a Livingstone-based civil engineering firm...
06
|
Sep
|
Worcestershire accountancy acquires Cannock-based counterpart | BUSINESS SALE
A full-service accountancy and advisory firm based in Worces...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.