Dundee’s burgeoning hospitality sector has received another boost with confirmation of the multi-million-pound sale of the city’s 95-bed Holiday Inn Express.
The purpose-built Waterfront property has been snapped up by Birmingham-based firm Cannock Investments, in partnership with newly-estbalished hotel developer and investor Hetherley Developments.
While the purchase price has not been revealed, the building was listed for sale with a £4.4m price tag last year and multiple offers were said to have been on the table at the closing date.
Cannock has been behind a string of hotel redevelopments south of the border.
Chairman Stephen Bantoft said: “Dundee has a very positive inward investment story and we are confident the hotel will provide strong returns.”
Hetherley’s Charles Scudamore said he was “pleased” to complete the six-month-old firm’s first deal.
“We are very confident for 2013, and hope to build on what has been an extremely good start for Hetherley,” he added.
The property — which includes 7,500sq ft of restaurant and retail space occupied by Marco Polo and Run 4 It — came on the market after Glasgow-based previous owner Saltire Leisure slipped into administration last year.
Holiday Inn Express and the other occupying businesses have continued to trade during the sale, unaffected by the plight of the property firm.
The development was initially funded using the Business Premises Renovation Allowance in March 2009, with the completed hotel handed over in May 2010.
Property agents Christie + Co handled the sale on behalf of David Chubb and Alan Brown of PricewaterhouseCoopers.
The deal was supported by the commercial arm of RBS, with financing through the bank’s Funding for Lending scheme.
“We received multiple offers at our closing date and were able to work with the purchasers to achieve the best result for the administrators,” said Christie + Co associate director Kerr Young.
He said a string of recent hotel deals proved there was “both debt and equity seeking sensibly priced hotel assets”.
“We are confident that more sales will follow in the week and months to come.”
The city has seen a flurry of activity in the hospitality market in recent months, with news of the rebranding of the existing Landmark Hotel under the Hilton Doubletree banner, the development of a new Malmaison at the former Tay Hotel on Whitehall Crescent, and the promise of talks with a number of interested parties over a new station hotel.
Earlier this year, The Courier exclusively revealed how the city’s historic Custom House and Harbour Chambers are to be turned into a five-star boutique location for the exclusive M Gallery brand.
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