Luxury hotel developer O’Callaghan Collection has sold a hotel in Cambridge for £55m.
The Irish family business has sold the freehold to the 155-bedroom The Tamburlaine in Cambridge to the Ability Group in an off-market transaction.
The hotel was sold with vacant possession, and agents said it attracted strong interest from institutions and owner-occupiers.
The Ability Group has subsequently agreed a 30-year lease with Dalata, who will rebrand the hotel as Clayton Hotel Cambridge.
The Tamburlaine is the first UK hotel from O’Callaghan Collection, which owns four hotels in Dublin and one in Gibraltar.
It features a double height lobby and brasserie restaurant, and is located on Station Road, a two-minute walk from Cambridge Station.
George Panayiotou, head of acquisitions at the Ability Group, said: “Cambridge has proven to be one of the most resilient hotel markets in the UK, so we are thrilled to re-enter the city with one of its flagship assets.
“During what can be deemed as turbulent times, the hotels sector has proved to be resilient and with another four deals in legals, we are keen as ever to keep expanding our UK hotel portfolio with key brands.”
Marcus Kinsella, associate partner at Gerard Nolan & Partners, said: “Despite speculation the market is slowing down, the deal demonstrates the UK hotel market is open for business and there is still strong demand precipitating outside of London to strong regional towns and cities.”
The Ability Group has a portfolio of more than 4,000 bedrooms across 14 hotels in Europe, including Doubletree Hilton in Cambridge. It has a target to create a £2bn portfolio spanning hotels, commercial assets and developments.
Gerard Nolan & Partners represented the vendors. C1 Capital Partners has been appointed as asset manager.
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