Topland Group led by billionaire Sol Zakay has exchanged contracts to acquire The Feathers Group, a portfolio of eight hotels with 726 bedrooms across North West England, including hotels in Liverpool, Chester, Preston and Manchester.
The acquisition which is due to complete later this month is the latest in a bold investment strategy to expand its growing leisure division through owning and operating regional hotels. Topland has now spent £200m in 13 months acquiring 28 hotels and has more acquisitions in the pipeline.
Sol Zakay, Topland’s Executive Chairman and CEO said: “I am delighted with the addition of The Feathers portfolio to Topland’s hotel platform in a strategic off market transaction which enhances our impressive track record. Our intention is to invest further in our existing hotels to strengthen performance, and to deploy significant further capital in new opportunities to grow the portfolio.”
The investment in the Feathers Group adds to Topland’s existing hotel interests of owned and managed hotels, including The Royal Crescent Hotel in Bath, Menzies Hotels and Hallmark Hotels. The Feathers acquisition, when completed will be the third portfolio Topland has have acquired within 13 months.
Topland’s owned and managed portfolio stands at 29 hotels approaching 3,000 rooms, providing accommodation to both corporate and leisure guests, with some of the hotels incorporating golf courses and spas. The hotel division now employs over 1600 team members. In addition, Topland lease nine hotels: five to Thistle in London and another in Edinburgh, Hilton Glasgow, Hilton Brighton Metropole and the Ramada in Mill Hill, bringing Topland’s exposure to the hotel sector to 38 hotels and in excess of 4,100 rooms.
To achieve longer term value, the company’s stated strategy includes significant capital investment to ensure the hotels will outperform their rivals, whilst benefitting from efficiencies brought about through the growing portfolio. Topland adopts a very granular approach to hotel asset management as it does across all its investments. The senior leadership team is closely involved in the strategy of the hotel portfolio, influencing real estate development and planning opportunities.
Enhancing the growth of the hotel portfolio
Lionel Benjamin, Director of Hotels, said: “The Feathers Group is a great addition, complementing the Menzies and Hallmark acquisitions, and enhancing the growth of our hotel portfolio. Our internal team are very hands on in day to day operations, with Bespoke operating as Topland’s management arm. Our combined management expertise will continue to focus on driving revenue and exceeding EBITDA expectations across the portfolio to maximise value. The Feathers acquisition underpins Topland’s long-term commercial strategy in the hotel sector.”
Paul Feather, Feathers’ Chairman and owner, said: “The Feathers Hotel Group is a family run business that has been built up by my family and management team over the last 60 years. Although this is the end of an era for us, it is the start of an exciting new phase for the business under Topland’s ownership and we wish them all the success for the future.”