Fladgate’s hotels team completes three large hotel transactions

2010 was a busy year for Fladgate’s cross-practice hotels team ending with the recent completion of three important hotel transactions.

The first saw property partner James Fry and corporate partner Julian Lewis advise Splendid Hotel Group on the reorganisation of a portfolio of eight branded and two unbranded central London hotels whereby one existing partner of Splendid Hotel Group acquired five hotels personally from the partnership and five were sold to Redefine South Africa funded by Aareal Bank of Germany. The total deal value was over £150m.

In the second, corporate partner Anthony Vaughan and real estate finance partner Kim McMurray advised Akkeron Hotels Group Limited on the acquisition of 18 Forestdale hotels. The acquisition was funded with a mixture of equity, deferred consideration and a new £32m credit facility provided by Lloyds Banking Group.

In the third, corporate partner Julian Lewis and real estate partner Matthew Williams completed the acquisition of the hotel, restaurant and spa premises at the iconic “Cube” development in Birmingham. The hotel will operate under IHG’s “Hotel Indigo” brand and the restaurant will be operated by Marco Pierre White.

Fladgate’s hotels team provides the full range of legal services required by clients across the industry spectrum, from listed hotel chains, operators and companies supporting the hotel industry, to luxury high end resorts. The team advises on the structuring, financing and successful completion of the range of acquisitions, disposals, joint ventures, refinancings, developments and other transactions undertaken by clients, whether in relation to existing businesses or new operating sites.

Commenting on the year Anthony Vaughan said: “Given the continuing difficult economic conditions we are pleased that 2010 has proved to be a strong year for the hotel team at Fladgate and we look forward with confidence to an exciting and busy 2011.”Other hotel transactions completed during 2010 include:

• Advising Splendid Hotel Group on the refinancing of their Intercontinental hotel development in Westminster, London with Bank of China providing the new facility in place of Bank of Scotland. The team is also advising Splendid Hotel Group on the development of Hilton Bankside in Southwark.
• Advising Ecclestone Square Hotel Limited on the acquisition, refinancing and development of the former Elizabeth Hotel on Eccleston Square, London SW1 which is currently being refurbished into a luxury boutique hotel.
• Advising Sojourn Hotels LLP on the acquisition of IHG branded hotels in Leeds and York.
• Advising the shareholders of Isle de France Group Limited on the sale of a significant minority stake in the company’s share capital to a US investment company. Isle de France Group operates the Hotel St. Barth Isle de France in Saint Barthelemy on the French West Indies and is consistently ranked by Condé Nast Traveller UK as among the best hotels in the world. Corporate partner Alex Kaufmann led the team.
• Advising Sanguine Hospitality Limited and its associates on a number of site acquisitions, franchise agreements with international brands and management contracts in relation to sites in Bristol, Exeter, Newcastle, Liverpool and Birmingham.
• Advising Seymour Capital Limited on their acquisition of a long leasehold interest in the Dakota Hotel, Nottingham. At the same time Seymour entered into a franchise agreement with Intercontinental Hotels Group to rebrand the hotel as a Holiday Inn.