The Abbey Hotel in Bath has been acquired by a London-based investment firm which has plans to expand the historic building’s operations.
The boutique hotel, which offers 65 beds, has been bought by property specialists Castleforge, for an undisclosed fee, as part of its strategy to develop its hospitality portfolio.
The four-star accommodation occupies three Georgian terrace houses on the west end of North Parade in the city centre, close to the Roman Baths within the UNESCO World Heritage Site.
Previously run by independent owner KE Hotels, the hotel operates as a Tribute Portfolio Hotel, one of Marriott International’s collection brands.
Castleforge has secured an option agreement to acquire the hotel’s two adjoining buildings, and has plans to add 15 large bedrooms later this year.
Michael Kovacs, founding partner of Castleforge, said: “Our team will continue to provide the best possible service to Abbey Hotel guests and its employees as we aim to expand and improve the hotel, all the while protecting the heritage and character that makes it special.”
The deal marks the firm’s fourth hotel acquisition since May 2021, after it previously bought the Bruntsfield Hotel and Crowne Plaza in Edinburgh as well as the Hilton Hotel in Cardiff.
Castleforge said it had identified Bath as a “strong investment opportunity” due to its popularity with international and domestic tourists.
Matt Lederer, hotel acquisitions director at Castleforge, said the company was looking forward to announcing further investments across the UK, as the hospitality industry “bounces back” from the pandemic.
Anil Khanna, managing director of KE Hotels, added: “We are very proud of the Abbey Hotel and the transformation into a high quality boutique hotel. The hotel offers an excellent guest experience supported by the fantastic team at the hotel. We wish Castleforge every success in taking over the hotel.”
Gavin Wright, senior director (hotels and hospitality) at JLL, advised KE Hotels on the sale. Axiom Hospitality will manage the hotel on behalf of Castleforge, when the deal is formally completed.
In addition to its rooms, The Abbey Hotel has a terrace patio for al fresco dining and two dining and bar venues - the Abbey Hotel Kitchen and ArtBar. Over the festive period the hotel erects a seasonal bar in its grounds as part of the city’s Christmas Market.
Global real estate advisor Savills recently revealed that hotel transactions worth more than £2bn took place in the South West in 2021, as the staycation boom attracted investors to the lucrative holiday market.
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