The two additions mark the first Welsh hotels to switch to AGO’s hybrid lease which delivers a combination of guaranteed rent plus additional profit rent
The second hotel to join is the Ibis budget Newport, which offers 104 rooms and is located adjacent to the M4. The hotels will continue to trade under their current brands as Ibis and Ibis Budget.
The latest additions bring the number of hotels leased and operated by AGO to 12, with existing AGO hotels located in Burton-upon-Trent, Bromley, Lancaster, Stansted, Portishead, Bromsgrove, Dundee, Peterhead, Glasgow, Thurrock.
The additions also increase the number of rooms in the AGO portfolio by almost 40%.
The company said its decision to expand “is a sign of AGO’s confidence in the resurgence of the economy hotel sector”, with the return of business travel bolstered by the rising demand for UK staycations.
AGO has noted a 29.5% increase in occupancy across its English and Scottish hotels from June to July and a further 17% increase from July to August.
Lionel Benjamin, co-founder of AGO Hotels said: “We are delighted to announce the addition of these outstanding economy hotels in South Wales. Since launching last year, we have experienced rapid growth with 12 hotels now choosing to switch to our platform.
“We are expecting this number to continue to grow significantly over the next 12 months, as with the addition of more comfortable and affordable hotels across the UK”.
Viv Watts, co-founder of AGO Hotels, added: “We are continuing to see widespread interest in AGO’s hybrid lease structure which benefits landlords both in valuation and yield terms, and we are looking forward to growing into new communities and engaging new asset owners with our distinctive offer of downside protection and genuine profit participation, having paid rents in full throughout the lockdown”.