The Hoxton Hotel Sold - June 2012
Quest Hotels Limited and its founder Kurt Bredenbeck are pleased to announce the sale of the UK’s most successful independent budget hotel, The Hoxton Hotel, to Ennismore Capital, a boutique investment firm, based in London focused on building businesses in Hospitality, Real Estate and Lifestyle.
The Hoxton was founded and created by Kurt Bredenbeck through his hotel vehicle Quest Hotels Limited. Bredenbeck was the original founder shareholder in Willow Street Hotels Limited, the corporate vehicle that held the hotel asset and that was sold on Friday to Ennismore in a simultaneous exchange and completion process. Until its sale, Bredenbeck remained the largest non-investor shareholder along with a syndicate of professional investors including Bridges Venture Capital, Mr. Sinclair Beecham and three private individuals.
One of the most successful new hotel ventures to debut in the UK in the past decade, the 208 room ‘luxury budget’ hotel achieved approximately £6 million adjusted EBITDA earnings in its last year of operation, a record-breaking level of profitability.
The purchase price is undisclosed, although Quest and its advisors believe it to be the highest transaction price achieved in the UK on a per room basis for an independent budget hotel.
The sale crystallised a landmark return to the investors, achieving nearly 50% IRR over the eight year period from the initial investment in April 2004. On completion, after repayment of the vehicle’s remaining debt facility, the net sale proceeds realised more than 10x the company’s initial equity investment of £6.3 million for its shareholder group, including Kurt Bredenbeck.
On completion of the sale, The Hoxton founder Kurt Bredenbeck commented:
“I would like to thank our extremely dedicated and hard working team at The Hoxton. As the founder of the hotel, I could not be more proud of their tremendous achievements over the past five and half years since opening, including, amongst many other accolades and awards, the Guardian and Observer Travel Award for ‘Best UK Hotel’ for three consecutive years.
In addition, I’d like to extend my acknowledgement and appreciation to our investors over the past decade or more since I started the company, including specifically our lead financial investor, Bridges Venture Capital, our two investor directors Gordon Miller and Graham Hazell, and our investor-chair Mr. Sinclair Beecham. Their enthusiastic support for my concept, vision and work - to create the hotel industry’s first ‘luxury-budget’ hotel – located in what at the time was my local neighbourhood parking lot - were key elements to achieving the dream I set out those many years ago to make the world’s best budget hotel”.
Wedlake Bell and Knight Frank acted for Quest Hotels.
For further information please contact:
Quest Hotels Limited
020 7242 4400