Peel Hotels has bought the freehold of the four-star Norfolk Royale Hotel in Bournemouth from English Rose Hotels for £8.25m.
The deal, which is due to complete on 1 June and was 100% funded by a bank loan, fits Peel’s core strategy of targeting medium-sized four-star city centre hotels.
The Norfolk had turnover of £2,772,000 in 2008 and earnings before interest and depreciation of £706,000.
David Turner, managing director of English Rose Hotels, said: “The Norfolk Royale has long been a successful part of our group, but it was the only hotel that we had located outside North Yorkshire.
“Accordingly, due mainly for operational reasons, we took the decision to sell the hotel and concentrate or efforts on our core location in and around the Scarborough area where the family business was started.”
Julian Troup, corporate director at property agent Colliers Robert Barry, which handled the sale, said: “This is further evidence of quality hotels still selling at equitable prices despite the ongoing concerns surrounding the general economy.
“We are finding a greater willingness from certain banks to support larger hotel purchases.”
Peel Hotels has also issued figures for the year ended 8 February, reporting profit of £1.04m, down from £8.37m the year before. The company's annual turnover declined to £12.72m, from £15.15m in the previous year.
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By Daniel Thomas
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