Connection Capital and Riverside Capital today announce the acquisition of the Cresta Court Hotel in Altrincham. The purchase of this landmark 140-bedroom hotel also includes the operating company, Harrop Hotels Limited.
The total purchase price for the freehold hotel and operational company was £2.95m, with further funds earmarked for a refurbishment of the hotel. Connection Capital clients have invested £2.05m of equity.
The new management team, Longrose Buccleuch Management Limited and previous Opco owner are providing the remainder of the equity. Santander is providing a further £1.7m as a loan facility. Riverside Capital’s Ed Henson acted as investment advisor for the acquisition and will monitor the investment going forward.
Built in the late 1970’s, the Cresta Court Hotel has held a historically strong position in the Altrincham market. It is also well known both locally and nationally for leisure users, corporates and airport customers. A comprehensive refurbishment programme of the bedroom stock and reception areas is planned allowing for a re-branding to Best Western Plus. RSM Tenon, Leeds, advised on the corporate acquisition.
Claire Madden, Founding Partner at Connection Capital, said, “This is an excellent investment for our clients particularly as the new management team has a strong business plan for growth. This will be supported by a major refurbishment and rebrand which will undoubtedly drive more long term value in the business”.
Dominic Wright, Chief Executive at Riverside Capital, says, “The Riverside Capital team was able to acquire an excellent property at a competitive level in the current environment, offering Connection Capital investors a potentially very attractive return on their money from quantifiable improvements to property and operational business. The partnership between our firms is key to making these property acquisitions quickly and successful”.