Hotel Brands

Macdonald Hotels sells landmark St Andrews and Oxford Hotels

Macdonald Hotels has completed the sale of Rusacks Hotel in St Andrews and the leasehold interest of the Randolph Hotel in Oxford to Chicago-based AJ Capital Partners for an undisclosed sum.

The news comes after the group pulled out of a deal to sell 27 of its properties in a £190m deal that would have helped to pay the majority of the company’s debts.

The group is currently gathering funds to repay £195m of loans from Lloyds Banking Group.

Macdonald Hotels Group deputy chairman, Gordon Fraser, said: “This is a superb deal for the business, which allows us to reduce our borrowings significantly while we progress a number of very positive options for the refinancing of the group.

“The scale of the deal reflects both the long-term performance and enormous potential of these landmark properties and I am confident they are in very good hands.”

AJ Capital Partners’ Graduate Hotels brand, which launched in 2014, currently operates 21 hotels in university towns across the US, including: Athens, Georgia; Ann Arbor, Michigan; Berkeley, California; Providence, Rhode Island, Seattle and Washington. It announced its first UK project, Graduate Cambridge, in July 2019.

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