£3.5m hotel deal
Thai group adds Eight Acres in Moray to Scots portfolio
Acquired: Eight Acres Hotel
A Morayshire hotel has been acquired by Thailand-based Lake Merritt Group, from Crerar Hotel Group for an estimated £3.5 million.
The sale was brokered by the specialist hotels and agency team at real estate advisers Colliers International.
The 52-bedroom Eight Acres Hotel in Elgin joins the Braid Hills Hotel, Edinburgh among four UK hotels in Lake Merritt’s portfolio.
Julian Troup, Head of UK Hotels Agency at Colliers International which brokered the Eight Acres deal, said it had drawn a lot of interest. “It is a further example of domestic and overseas buyers looking to secure a hotel in a popular Scottish location,” he said.
“The sale is indicative of a wider trend of increased demand for quality provincial hotel opportunities from a diverse range of potential buyers, ranging from international investors attracted by weaker sterling and improving trading prospects, private buyers seeking the benefits of a lifestyle opportunity and corporate investors focused on favourable returns and real estate alternatives.”
Paddy Crerar, chief executive of Crerar Hotel Group, added: “We are very pleased with this sale, which is another key milestone in our right-sizing strategy and takes us even closer to achieving our aim of being Scotland’s highest quality family of hotels and Inns.
“The Eight Acres has been an excellent asset for us. However, the agreed deal was simply too generous for us to ignore, particularly as the good chemistry with such experienced buyers made it a painless journey.
“It once again confirms that the appetite for quality Scottish assets continues to grow, which is a clear backing for the already rock-solid Scottish tourism sector.”
Crerar Hotels now has a reduced portfolio of seven key hotels and remains fully committed to the Scottish tourism sector, having reinvested more than £10m back into the estate as a result of the recent sales, including a £3m reinvestment plan in its 85-bedroom Isle of Mull hotel, where work is now under way.
Shepherd and Wedderburn managing partner Andrew Blain advised Crerar on legal aspects of the deal.