A well thought-out asset management programme turned around the fortunes of this 140-bedroom hotel, part-purchased in 2013 for £3m. During a 4-year hold period, we converted all 90 single rooms to double rooms, added 16 executive rooms (8 of them new), redecorated the conferencing facilities, bar area and reception and relocated the restaurant to the front of the hotel. The overall upgrade saw the EBITDA rise from £226k on acquisition to £775k on exit. The investment was sold in 2017 for £8m.
"This investment goes to show that seizing good opportunities as they arise can really pay off. This is not something most private investors have the capacity or appetite to do themselves - the experts can do it for them." Claire Madden , Director, Connection Capital (equity partner)
- Hold period 4 years
- EBITDA rise 243%
- IRR 19.5%
- Equity multiple 1.98x