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Hotel for Sale in London, United Kingdom

For Sale: Two International chain hotels, 4 Star (Gatwick) + 3 Star (Heathrow) refurbished recently.
This transaction has concluded.
This Business is on a Premium Plan
Established 10-20 year(s)
Employees 500 - 1000
Legal Entity Public Limited Company
Reported Sales USD 15.7 million
Run Rate Sales USD 15.7 million
EBITDA Margin 28 %
Industries Hotels
Locations  London
Local Time 3:17 PM Europe / London
Listed By Advisor / Business Broker
Status Active
Overall Rating
Full Sale
Asking Price: USD 79 million (Native Currency: GBP 60,000,000)
Reason: The owner is retiring.
Includes physical assets worth USD 51 million
Interested to connect with advisors
Documents
Front View
Room  3
Business Overview
- Strong financial performance with an EBITDA of £4,000,000 showcasing robust profitability.
- Impressive EBITDA margins of 28% for the 4 Star hotel and 52% for the 3 Star hotel underlines operational efficiency.
- Strategic positioning near major airports, catering to a diverse customer base and ensuring continued demand.
- High occupancy rate of 86%, reflecting the hotels’ popularity and operational performance.
- Significant growth opportunity with potential for upscaling and enhancing service offerings.
- Secured long-term contract with the government guarantees 100% occupancy for the next 10 years, providing revenue stability.
- Dedicated operations team already in place to ensure smooth transitions and continuity for new ownership.
Products & Services Overview
4 Star hotel (158 rooms)
3 Star hotel (142 rooms)
Near airports (4 star close to Gatwick and 3 star close to Heathrow)
Long-term contract with Government in place.
Assets Overview
Land and Building worth £37,000,000.
Debtors £1,200,000.
Cash at Bank £300,000.
Stock £33,806.
Facilities Overview
The proposed investment presents a compelling opportunity for the complete acquisition of two branded airport hotels in the UK. This venture offers a mix of enticing risk-adjusted returns and substantial growth potential, with the option for either an asset or share transaction, providing flexibility in the approach.
The transaction involves the off-market purchase of two branded hotels strategically situated near Gatwick Airport, Heathrow Airport, and central London, offering proximity to key tourist attractions. The Gatwick property operates as a standard hotel, while the Slough property is currently under government contract on 100% occupancy. This is under a 10 years contract out of which 3 years have passed. This means 7 years still remain on the 100% occupancy.
Both properties have demonstrated robust occupancy rates and resilience in their recovery post-Brexit and post-COVID-19. They exhibit sustained business stability with minimal seasonality throughout the year.
The London Gatwick Hotel, situated a mere 5 minutes from Gatwick International Airport and in proximity to Redhill Aerodrome, provides convenient access to Crawley town and its amenities. Whether catering to business travellers or families, the hotel is surrounded by diverse recreational options and ensures effortless travel to central London. Gatwick hotel has been refurbished 2 years ago.
Conveniently positioned adjacent to Slough Train Station, the Hotel in Slough, located near Heathrow Airport and central London, offers easy accessibility. With its strategic location providing swift access to the M4, M25, and M3 motorways, the hotel ensures excellent connectivity to recreational grounds and hospitals.
Capitalization Overview
Self-funded through profits earned and invested back into the business.
Recent Activity
  • Earlier than 15 days
    Owner, Hotel, London, Corporate Investor / Buyer connected with the Business
  • Earlier than 15 days
    Founder And CEO, London, Investment Bank connected with the Business
  • Earlier than 15 days
    Director, Dublin, Business Broker connected with the Business
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This transaction has concluded. View similar business opportunities on SMERGERS
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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