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!
This company is a luxurious hair and beauty town, located in an affluent Suffolk town. Currently providing both hair and beauty services, this business has achieved a glowing reputation within the town.
LEASEHOLD
This is a fantastic opportunity to acquire a the unique flagship gym offering quality fitness at affordable prices. The mixed gym site is set over two floors within the centre of Huyton.
The business has been trading since 1986 and built up an enviable reputation not just locally but within the industry in general, a true testament to the hard work & dedication from the current owner, resulting in the high calibre of business on offe...
LEASEHOLD
|
30
|
|
Sep
|
Administrators seek buyer for pie maker’s manufacturing sites and other assets | ADMINISTRATION
Administrators from FRP are seeking a buyer for a longstandi...
|
29
|
|
Sep
|
Wetherspoons to sell 32 pubs as costs rise | COMMERCIAL PROPERTY
Pub chain JD Wetherspoon has announced that it will sell 32 ...
|
28
|
|
Sep
|
Assets to be sold after collapse of black plastics recycling firm | ADMINISTRATION
Administrators are seeking to sell the assets and intellectu...
Sign up to receive our acquisition alert emails to get your FREE guide
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