The 40-bedroom Castle Hotel in Tamworth, Staffordshire, has been sold in a deal brokered by specialist property adviser Christie + Co.
Mr Nair Ezzat, an investor from Kuwait has acquired the hotel for an undisclosed sum off an asking price of £2.1 million.
Perched in the shadow of the historic Tamworth castle, the Grade II listed hotel is a highly reputable wedding venue and boasts two banqueting suites, a vodka bar, restaurant and nightclub.
Outgoing vendor Tim Wedgwood acquired the hotel through Christie + Co in 2005. After ten years of enjoyable and profitable ownership, Tim is moving on to pastures new.
Gavin Wright, Director at Christie + Co’s Birmingham office handled the sale. He comments: “We are delighted to have secured a sale for Tim Wedgwood and wish him the very best for the future. The sale of Castle Hotel demonstrates a strong demand for well located and good-quality hotels which have seen ongoing investment in the asset.”
He adds: “Regional hotels performed strongly last year and this did not escape the notice of investors. A substantial pool of private equity capital and better availability of debt financing have put the fizz back into the UK regional hotel sector.”
The sale was funded through Christie + Co’s sister company Christie Finance.
Stuart Pawelczyk, finance consultant at Christie Finance says: “I was delighted to secure such competitive terms for my client’s first hotel purchase in the UK. Obtaining 70% LTV goes to show that with the right support from an experienced and knowledgeable commercial mortgage broker, the banks are willing to listen and have an appetite to lend in the hotel sector.”