The acquisition by Fairtree represents its eighth investment in the UK hospitality market. The Fairtree Fund already owns seven further hotels including Borrowdale Gates Hotel, Grange-in-Borrowdale and a number of hotels in the south-west.
The property features 55 en-suite bedrooms, five lounges and conferencing facilities for up to 300 delegates.
Colliers International handled the sale, acting on behalf of private owners Hugh and Jenni Rushton. Providence Hospitality, a UK-wide hospitality management company, has secured contracts to manage all the properties owned by Fairtree.
Joe Bester, director of Providence Hospitality, said: “Providence prides itself on the highest quality of customer care, and we are keen to maintain our reputation in these new locations. Our extremely attractive product offering, cutting-edge team and best-of-market pricing has been very successful, and we now manage 10 properties in the UK.”
Julian Troup, head of UK hotels agency at Colliers International, who secured the sale, said: “The acquisition of the Grange Hotel is a further example of us being able to sell the shares in the hotel owning company and in a highly confidential fashion. There was competing interest in the hotel and the decision was taken to proceed with a proven buyer eager to further expand in the area.”
He added: “We are seeing an emerging trend of increased demand for quality provincial hotel opportunities from a diverse buyer set. These profiles range from international investors (attracted by weaker sterling and improving trading prospects), private buyers (attracted to the benefits of a lifestyle opportunity) to corporate investors (attracted to favourable returns and real estate alternatives).”