UK: The Hut Group (THG), one of the world’s largest online beauty and wellbeing retailers, has acquired the Eclectic Hotel Group.
The transaction includes the King Street Townhouse and the Great John Street Hotel.
The high-end boutique hotels provide 70 rooms in total, combined with award-winning events and entertaining space. The Eclectic Hotel Group was acquired from founders Eamonn and Sally O’Loughlin, who will continue to own and manage Didsbury House Hotel and Eleven Didsbury Park, both of which were divested from the Eclectic Group prior to completion.
THG says the strategic acquisition “demonstrates the group’s innovative approach to effective engagement with consumers in both the online and offline environment. As such, the hotels will form part of THG’s growing marketing infrastructure that delivers enhanced consumer experiences, influencer and brand-led events as well as content creation”.
The investment will also be supported by a £10 million refurbishment upgrade plan.
Matthew Moulding, founder and chief executive officer of The Hut Group, said: “We are delighted with this recent acquisition, which comes at an exciting time for THG. As a fast-growing, brand-led business we are always looking to develop innovative approaches to drive greater engagement with our customers and today’s acquisition is testament to that strategy. With consumer behaviour continuing to evolve away from the traditional high street setting, these two highly prestige hotels will be instrumental in showcasing our leading Beauty and Wellbeing brands.”
Eamonn O’Loughlin, founder of the Eclectic Hotel Group, said: “Without the support and commitment of our many fantastic employees over the past 20 years none of this would have been possible. A massive thank you to them. While it has been a difficult decision for us to take, we feel both hotels are going into the best of hands with Matthew and his team and we are extremely proud of the portfolio that we have built over the years.”
THG recently announced newly improved and extended group banking facilities, in excess of $1 billion (USD) to support major investments in beauty, technology and infrastructure, enabling the group to continue to deliver on its growth plans.
The Hut Group was advised by KPMG for financial due diligence, Deloitte for tax due diligence and Gowling WLG for legals. The vendors were advised by Convex Capital and Freeman Fisher.