Fuller’s has exchanged contracts in a £40m deal to acquire Cotswold Inns & Hotels.
The acquisition comprises seven freehold country inns and hotels and eight freehold staff cottages in the Cotswolds, as well as two leasehold bars in Birmingham city centre.
An eighth hotel – The Broadway – does not form part of the acquisition and will be retained by the current owners.
Simon Emeny, chief executive, Fuller’s, said: “The inns and hotels being acquired are all iconic, character properties in sought-after locations in the Cotswolds. They will further enhance our existing portfolio of premium hotel accommodation, adding 201 stylish bedrooms.
“A number of the sites have further development potential and Cotswold Inns & Hotels benefits from an established function business, spanning both leisure and corporate custom as well as weddings. We expect to realise further benefits from bringing the properties into Fuller’s and for the acquisition to be earnings accretive in the first year.”
The deal is being funded from existing banking facilities and is expected to complete on 31 October 2019.
It is envisaged that all employees will transfer to Fuller’s as part of the deal.
Cotswold Inns & Hotels was founded in 1997 by Michael and Pamela Horton. In the financial year ended 30 September 2018, the properties being acquired generated revenue of £17.5 million and site EBITDA of £3.4 million with a gross asset value of £31.5 million.
