New York-based investor Marathon Asset Management has continued its expansion into the UK regions with the purchase of the Ramada Salford Quays, Manchester, and the Ramada Mailbox, Birmingham, for £21.5m.
The hotels, comprising 142 and 90 bedrooms respectively, were bought by Marathon’s UK subsidiary MCAP Global Finance.
Shiva Hotels decided to market the properties, which were considered to be non-core, in February through Savills and JLL.
The Ramada Salford Quays is near MediaCityUK, Manchester city centre and Old Trafford football and cricket grounds. The Ramada Mailbox in Birmingham is within the mixed-use Mailbox development, which is undergoing a £50m modernisation.
The hotels have been sold with the opportunity to break the existing franchise agreement and reposition them to an international-quality four star brand. They will be managed by Valor Hospitality Limited, on behalf of MCAP Global Finance and re-branded.
Will Duffey, executive vice president, JLL hotels and hospitality, said: “The combination of the exceptionally strong regional UK hotel operating market, together with the operational flexibility of these assets, drove considerable appetite from investors. With more than 80 parties signing the NDA to consider the opportunity, we were able to drive an exceptional price in excess of the £21.5m guide.”
Rob Stapleton, director at Savills, said: “These two hotels were well received by the market and provide compelling investment opportunities; they are an excellent addition to Marathon’s growing UK portfolio. We are also delighted to have secured such strong results for our clients, enabling them to further their own portfolio repositioning strategy.”
