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+--- Thread: IHL AQUIRES UK HOTELS (/thread-394.html)
IHL AQUIRES UK HOTELS - TEAM HARLFORUM - 04-07-2016
Johannesburg - Hotel and leisure-focused property investment firm, International Hotel Group Limited (IHL), has completed the acquisition of two Holiday Inn Express hotels in Redditch and Southampton in the UK for £26 million (R552m) plus costs.
The group owns eight hotels in the UK and has a primary listing on the Euro MTF market of the Luxembourg Stock Exchange and a secondary listing on the JSE’s AltX.
Both the 100-bedroom Holiday Inn Express Redditch and 176-bedroom Holiday Inn Express Southampton are freehold properties and have new 20-year franchise agreements with InterContinental Hotels Group.
The Holiday Inn Express Redditch was acquired for £7m plus costs and had an occupancy last year of 75 percent, while the Holiday Inn Express Southampton was purchased for £19m plus costs and had an occupancy of 84 percent last year. The purchase price was partly settled through the proceeds of the £7m private placement as announced by IHL last month, with the balance of the purchase price of £19m funded through existing cash resources and senior bank debt funding.