Mergers & Acquisitions

🏨 Josiah Mackenzie and Andrew Arthurs are in Phoenix this week for The Lodging Conference, focusing on hotel owners and investors. Andrew Arthurs, President and COO of Actabl, discusses strategic approaches involving people, partnerships, and technology to enhance asset value.

🏨 RateGain acquires Sojern for $250 million to help hotels bypass OTA's dominance. The DewDrop Inn, a 150-room hotel in Miami, illustrates the change. Traditionally, hotels paid OTA commissions of 15–20% by maintaining rate parity. Now, AI assists travelers, offering private rates via RateGain’s tech, avoiding 15% commissions. Sojern’s data identifies high-value customers. Public rate: $189; private AI rate: $169 with breakfast. This strategy diminishes OTA leverage and strengthens direct bookings.

💵 BLS UK Hotels Ltd acquired the Trefeddian Hotel in Aberdyfi for £6.55 million, ending over 100 years of family ownership by the Cave-Browne-Cave family. The Birmingham-based law firm Wilkes, with Cooper Parry and Skye Corporate Finance, advised on the transaction. The sale reflects increasing confidence in the UK hospitality sector, with rising single-asset hotel transactions. Caroline Cave-Browne-Cave praised the legal team's support during the process.

🏨 Penally Abbey Hotel, a Grade II listed property in Tenby, Pembrokeshire, has been owned by Melanie and Lucas Boissevain for 11 years. The 12-bedroom hotel, featuring sea views and a two AA Rosette restaurant, was named Best Hotel in Wales 2024. It’s now for sale for an undisclosed sum, marketed as a going concern. Sam Roberts of Christie and Co highlights its strong trading history and potential for revenue enhancement.

🏠 The Williams family acquired Hertford House Hotel and Quiet Man pub in Hertford for over £2.2 million following the previous operator's administration. The properties include 28 en-suite rooms and a pub seating 40 indoors. All staff positions were secured and transferred to Tewinbury Farm, a riverside hotel and farm near Welwyn operated by the family since 1931. Brothers Jack, Tom, and Sam Williams will lead the development, focusing on local produce and community emphasis.

🏨 In a choppy real estate market with high interest rates and declining demand, hotel owners should consider selling based on personal motivations, not market timing. While construction costs soar, purchasing remains a cost-effective option. Abundant equity and brand mobility offer opportunities. Each asset requires an analysis of recent sales, location, and potential costs. Owners must evaluate if exiting is in their best interest and consult financial advisors for preparedness in the sale process.

🏨 PHD Hotels acquired the 111-key Aloft Birmingham Soho Square, brokered by Hunter Hotel Advisors. The hotel is located four miles from downtown Birmingham within the vibrant Soho Square district, featuring local boutiques and restaurants. Nearby are the Birmingham Zoo, Botanical Gardens, and universities. The hotel offers a meeting space, indoor pool, 24-hour fitness center, Re:fuel snack bar, and W XYZ Bar. Christopher Chavis of PHD Hotels emphasized the strategic value of the acquisition in this dynamic market.

🏨 Eastwood Park near Wotton-under-Edge, Gloucestershire, is on the market for £6 million. The Grade II listed hotel includes 71 ensuite rooms, eight meeting rooms for up to 150 delegates, and expansive outdoor grounds. Owner John Thatcher, retiring after 30 years, aims for a new buyer via Christie and Co. The venue, hosting weddings, meetings, and conferences, has significant growth and development potential, especially in leisure and corporate sectors.

💸 Travel software firm WeTravel, founded in 2014 in the Netherlands, has tripled its valuation after securing $92 million (€68 million) in Series C funding. Led by Sapphire Ventures, this investment will enhance its platform with AI-powered tools. CEO Ted Clements highlights the focus on streamlining complex workflows for multi-day travel. Other investors include Left Lane Capital and Base10. Previously, WeTravel raised $27 million under three years ago to expand its fintech solutions.

🍺 Balfour Hospitality sold its Hush Heath Inns portfolio, a five-pub joint venture with Stonegate Pub Company established in 2017. The pubs, including locations in Painswick, Tenterden, Rye, Forest Row, and Hollingbourne, are now fully owned by Stonegate. Balfour focuses on its venues, forecasting over 70,000 visitors at Balfour Winery in Kent in 2025. Led by Leslie Balfour-Lynn, the company operates boutique hotels and restaurants, ensuring an "authentically English experience.