Macdonald seal £34 million deal
Macdonald Hotels & Resorts Ltd, the UK’s largest privately-owned hotel group, has announced that it has concluded a £34 million deal to buy the HolyroodHotel in Edinburgh (pictured) and the Cardrona Hotel, Golf and Country Club in Peebles.
The group, which currently manages both properties and had a shareholding in each, now owns all the shares in Holyrood Hotels Ltd and majority shareholding in Cardrona Hotel, Golf and Country Club Ltd, inviting one original shareholder, Tom Renwick, to remain as a partner. Macdonald has also invited Mr Renwick to become Chairman of the Cardrona company.
There will be an investment of £4million, most of which will be spent at Holyrood, where Macdonald aims to move the hotel towards becoming a 5 star property, the restaurant/bar area will be upgraded and bedrooms refurbished. At Cardrona, the ground floor will be extended with the addition of a conservatory restaurant, new staff accommodation will be created and a timeshare development.
Making the announcement, Donald Macdonald, Executive Chairman of Macdonald Hotels, said:
“We are pleased to have concluded this deal. Cardrona and Holyrood are significant additions to our portfolio of four star properties and we believe that both have untapped potential that we will be working hard to realise, starting with an overall investment in each property of £4m, most of which will be used to develop Holyrood.
“In terms of Cardrona, I am pleased that Tom Renwick has agreed to remain a shareholder in the company and take on the role of Chairman. He is a well-known and highly respected figure locally, he knows the hotel and so is well-paced to take on this role. It’s time for Cardrona to start to live up to its potential and it joins our growing collection of top quality properties with a golfing focus, such as Macdonald Botley Park, Macdonald Linden Hall, Macdonald Aviemore Highland Resort, Macdonald Rusacks and Macdonald Marine Hotel and the Macdonald Hill Valley Hotel.
“The acquisition of Holyrood is truly a jewel in our crown. It is more than capable of becoming a five star hotel and it fits in well with the group’s strategy of developing good city centre locations for our hotels. This year, we’ve opened two new-build hotels, The Lodge in Cardiff and St Paul’s in Sheffield, and have bought a building in Manchester to create a new hotel to open in 2006.
“The acquisition of the Holyrood and Cardona underlines our belief that our future lies in four and five star high quality properties.”
Tom Renwick, the new Chairman of Cardrona Hotel, Golf and Country Club Ltd, added:
“I am very pleased and proud that Macdonald has invited me to become Chairman of the new company. Cardrona is an exceptional facility and the injection of new additional investment will enable the club to fully capitalise on its potential. I am delighted to have a central role in helping achieve that.”