Private equity firm Zetland Capital Partners has acquired the 156-bedroom Macdonald Holyrood Hotel.
The acquisition, for an undisclosed sum, is one of the largest hotels transactions completed outside of London in 2021, and also includes the 338-bedroom Macdonald Manchester Hotel.
The hotels will now be managed by Zetland’s joint venture partner Hamilton Hotel Partners.
Ahmed Hamdani, managing partner at Zetland, said: “Our strategy is to provide significant investment to refurbish and reposition these hotels.
“This acquisition aligns with our investment strategy to purchase and invest in well-located hotels across the UK, where we can materially enhance the product offering and benefit from the recovery of demand in the UK’s key cities.”
Aaron Falls, chief financial officer at Macdonald Hotels & Resorts, said: “The successful sale of these well-known hotels is a major milestone in our strategic business plan, which will see a substantial reinvestment in upgrading the remainder of our 28-strong hotel portfolio and nine resorts, together with further debt reduction.”
Zetland Capital Partners was advised by Burgess Salmon, KPMG, EY, Christie & Co, Lockton, Chandler, Nova Ambiente, Westfort Advisors and Arendt.
Macdonald Hotels & Resorts was advised by Savills, CMS Cameron McKenna Nabarro Olswang, and Alvarez & Marsal.
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