COMPLETED: Lorne Hotel, Glasgow
Hotel and development opportunity in the West End of Glasgow
We were engaged by the joint administrators of Bellhill Limited, Blair Nimmo and Alistair McAlinden of Interpath Advisory to market the Lorne Hotel.
The Hotel was closed due to the COVID19 pandemic and had been since 26th December 2020. Prior, the Property traded since 2007 as a 3 star hotel with independent bar and restaurant. Due to its location within a recognised event destination area in the west end of Glasgow the target customer base was transient tourists attracted by the Glasgow city location, wider west of Scotland and specifically the Hydro and SECC event calendar. We were advised that virtually 100% of custom was for leisure purpose and that there were no corporate contracts held.
The Hotel consisted of ;
- 102 guest bedrooms – all with en suite facilities comprising at least a shower, toilet and wash basin.
- Hotel reception with lounge seating area
- Bukharah restaurant / breakfast dining area– 170 covers
- Billberry Bar – 80 covers
- Lorne Function room – 170 maximum capacity (divides into three separate suites)
- An additional 11 bedrooms under development.
Our instructions were to market the opportunity and to achieve in excess of £6.5M.
Due to the location and configuration of the property our view and that of Interpath Advisory was that it would not only be of interest to Hotel operators but also as a development opportunity.
The main objective was to complete the transaction before the end of 2021 which to be honest was felt to be a challenge in itself.
With that in mind we used our extensive knowledge of Hotel Operators on a regional, national and international basis as well as our experience within the development arena drawing on our UK team to put together an impressive contact list that would form the basis of our initial launch to market.
We agreed a Timeline with Interpath Advisory to secure the completion of the sale before the end of 2021 and launched to market in early August .
The marketing process went extremely well with close on 130 NDA’s being signed and returned and circa 30 tours taking place both form existing Hotel operators and developers.
Due to this , it was decided that a closing date for indicative bids would be set for 15th October in order to crystalize the interest.
At closing date we received multiple bids across a wide price range. After a review of all bids with Interpath Adisory it was decided that due to a number of the bids being very attractive we reapproached those bidders asking them to resubmit their best and final bid. In doing so this resulted in a clear bidder who was afforded preferred bidder status .
The contract that was issued to those bidding by us was very clear with what was expected if preferred bidder status was granted in terms of non refundable deposit and Timeline for conclusion of missives and indeed completion.
We are pleased to report that these conditions were met and the deal completed within 8 weeks of preferred bidder status being granted , a rarity in any market let alone within a Pandemic!
Here’s What Our Clients Have to Say
Following a competitive tender process, Christie & Co were selected to work with us on the disposal of the Lorne Hotel due to their ability to reach hotel operators across the globe and bring alternative real estate investors to the table, coupled with a good understanding of the challenges facing an insolvency practitioner when looking to realise a unique real estate asset.
Here, they quickly understood the remit and worked hand in glove with our team, helping us to drive real competitive tension. This, in turn, led to a sale being achieved at a price point which will lead to the optimal outcome for creditors.