Fuller’s acquires Cotswold Inns & Hotels for £40 million

UK: Seven country inns and hotels, eight staff cottages, and two leasehold bars in Birmingham, are part of the acquisition by pub group Fuller, Smith & Turner.

Cotswold Inns & Hotels was founded by Michael and Pamela Horton in 1997. The Broadway Hotel in Worcestershire will be retained by the couple.

The properties being acquired generated revenue of £17.5 million and site EBITDA (earnings before interest, tax, depreciation, and amortisation) of £3.4 million, with a gross asset value of £31.5 million in the financial year ending 30 September 2018.

These include The Lamb Inn and The Bay Tree (Burford), Hare & Hounds and The Close (Tetbury), Manor House (Moreton-in-Marsh), The Bear of Rodborough (Stroud), and The Swan (Bibury).

Simon Emeny, chief executive at Fuller, 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 acquisition is expected to complete on 31 October 2019, and will be funded from existing banking facilities.

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