Peel cashes in with sale of Avon Gorge hotel

Peel Hotels has sold its freehold property, the Avon Gorge hotel in Bristol, together with the associated staff house at Caledonia Place for £15.5m.

In the financial year ended 11 February the hotel contributed almost £750,000 before interest, tax and depreciation. The deal is expected to complete 3 September.

The company also announced that it had reached agreement for the sale of three quarters of an acre of land, along with planning permission for 99 new apartments, office space and car parking in Salem Street, Bradford for £2m.

Peel Hotels acquired the land around Salem Street when it bought the Midland Hotel in 1998. This second sale is expected to complete on 26 November.

Group chairman Robert Peel said the actions taken would leave the company debt free at a time when the cost of borrowing was increasing as the value of property fell.

“This environment should give the company acquisition opportunities going forward,” said Peel.

In the half year to 26 August the hotel company’s turnover increased 2.2% with revenue per available room 4.2% ahead of the same period last year.

Peel Hotels finance director retires >>

Peel Hotels reports a 'disappointing' year >>

By Owen Hill

E-mail your comments to Owen Hill here.