The hotels, trading under the Best Western, Ramada and Holiday Inn Express brands, include a mix of leasehold, freehold and operating management agreements. The leases on six of the hotels have been assigned to the Group with deeds of variation which bring their terms into line with the current market. The hotels are a collection of regional three star and budget hotels that in total employ over 200 people with a combined annual turnover of c£10m.
All the hotels will continue to operate as usual, with minimal changes made. Akkeron is well-capitalised, with long term financing in place and significant management expertise. The Group has plans to grow its business into the leading provincial UK hotel business with a portfolio of up to 150 regional hotels across the UK. This will be achieved by forming sustainable partnerships with banks, leaseholders, local communities, local suppliers and other stakeholders.
Today’s acquisition follows the announcement in December that Akkeron had acquired Forestdale Hotels Limited (“Forestdale”), a group of 18 three star regional hotels. As with the acquisitions from Mulbourn Hotels Limited trading as Folio Hotels and Forestdale, Akkeron will invest in all the Butterfly hotels to improve the quality of their offerings to customers. Akkeron will also make large investments in people, training and systems to ensure that the Group is well-placed to provide its customers with a first-class service.
Commenting on the acquisition, Nick Greaves, Akkeron Group’s Sales and Marketing Director, said:
“The hotels are good solid businesses that were hampered by the debt of their parent company and we have been able to act quickly to safeguard their future,”
“From the customer’s perspective, it will be business as usual moving forward, but the management will benefit from the support of a wider group and the businesses will have the funding required to trade properly. Our aim is to ensure that the only changes will be improvements in service and facilities,” Greaves added.
Commenting on the acquisition, Matthew Welbourn, MD of Akkeron Hotels, said:
“The Butterfly acquisition provides the initial phase of the third leg of our midscale business, bringing to the Group a portfolio of hotels that trade under international brands. Our strategy is to develop our third party branded business, alongside our own 4* 'light' brand (Akkeron Hotels) and leisure brand (Forestdale). Butterfly was an unfortunate victim of the recession, but I am pleased that we were able to bring the hotels out of administration, thereby safe-guarding hundreds of jobs as well as the interests of other key stakeholders. I am delighted to welcome our new colleagues to the Group and I look forward to working with them”.
The Hotels included in this acquisition are.
Holiday Inn Express (Banbury)
Holiday Inn Express (Castle Bromwich, Birmingham)
Ramada (Bury St Edmunds)
Best Western Rockingham Forest (Corby)
Best Western Himley Hotel (Dudley)
Holiday Inn Express (Kettering)
Ramada (Kings Lynn)
Ramada Cromwell (Stevenage)