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Managed by The Peel Group subsidiary, Tower Hotel Management Limited, the limited service Hotel Inn Express Trafford City is situated near the Trafford Shopping Centre and EventCity, which is a large exhibition and conference venue. (Image: IHG)
Hiap Hoe Limited, via its subsidiaries Meteorite Assets Limited and Meteorite Manchester Limited, has agreed to acquire Holiday Inn Express Trafford City in Mercury Way, Manchester from Topland (No. 18), Mill Lane Estates, and Marick Capital for £26.3 million (S$46.4 million).
In an SGX filing, the company revealed that the purchase price is equal to its net asset value, after taking into account “the various commercial factors including a valuation report prepared by an independent professional valuer, the trade projections for the hotel and the recently transacted prices for other hotels in Manchester.”
It noted that the consideration will be funded via a combination of internal resources and debt.
Managed by The Peel Group subsidiary, Tower Hotel Management Limited, the limited service hotel is situated near the Trafford Shopping Centre and EventCity, which is a large exhibition and conference venue.
“The directors believe that the good location of the hotel, being in the high growth region of Manchester, together with a world leading brand in Holiday Inn Express and the strong management team put in place by the hotel manager, represent an ideal opportunity for the group’s maiden foray into United Kingdom’s hospitality industry,” said Hiap Hoe.
“The acquisition would also allow the group to further strengthen its recurrent income stream.”
The company does not expect the hotel to materially affect its consolidated net tangible assets per share as well as its consolidated earnings per share for the financial year ending 31 December 2017.
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