Sector remains attractive
Another Scottish hotel lures foreign buyer
GoGlasgow: refurbished two years ago
Another Scottish hotel has been acquired by an overseas buyer as the hospitality sector continues to lure foreign investment.
Singapore-based Buxani Group has bought the 117-room GoGlasgow Urban Hotel from the Crerar Hotel Group in a deal believed to be in the region of £10 million.
Julian Troup, head of Colliers’ UK Hotels Agency who handled the sale, said: “The acquisition of GoGlasgow was conducted in a highly confidential fashion and is a further example of an overseas buyer securing a prime UK hotel outside of London.
“We are continuing to witness an increasing flow of such deals, particularly involving buyers from the Far East and Asia.”
He said this was a result of the devaluation of sterling following the EU Referendum means such transactions are now 20% less expensive than in recent years, thereby making the UK hospitality market an attractive prospect for buyers overseas.
Crerar Hotels has retained Colliers to assist in disposing of a further cluster of its hotels portfolio.
The GoGlasgow Urban Hotel is situated near Ibrox stadium on Paisley Road West. It was re-developed in 2015 by Crerar.
Following completion of the sale the hotel will be managed by Thailand-based Compass Hospitality.
Paddy Crerar, CEO of Crerar Hotel Group, said: “Colliers brought a number of parties to the table, all with the ability to transact at the level we required; however it was clear that Buxani Group were by far the most committed to the hotel and were a thoroughly decent company to deal with.”
It is Buxani Group’s first in a series of planned investments into the UK hotel market and the 14th to be managed by Compass Hospitality.
Matthew Welbourn of Compass Hospitality UK, added: “The hotel was repositioned following refurbishment two years ago and has since shown robust growth with excellent customer feedback following the development.”
Kishore Buxani, Founder & CEO of the Buxani Group, added: “We are delighted that we have secured our first hotel in the UK and especially in Scotland, which is currently experiencing tremendous growth in tourism and business travel.
“We continue to be very optimistic of the global tourism industry and are actively looking for more hotel opportunities in the UK and Europe.”