SINGAPORE - The managers of the CDL Hospitality Real Estate Investment Trust and the CDL Hospitality Business Trust have fully acquired control of five-star luxury hotel The Lowry in Manchester.
The roughly 52.9 million pound (S$94.7 million) acquisition was for the 100 per cent stake in The Lowry Hotel Limited, which will continue to hold and operate the hotel.
Assuming ownership of the hotel from January 1 last year, the forecasted net property income yield for 2016 would be 7.3 per cent, based on the property price of 52.5 million pound.
The 165-room Lowry Hotel is one of the most recognised in Britain, thanks partly to its popularity among the Manchester United football stars.
Last year, the hotel recorded a revenue per available room growth of 6.9 per cent, benefitting from strong demand and its guest room refurbishment in 2015 and second half of last year.
"This acquisition reinforces our strategy to invest in markets with robust medium to long-term growth potential," chief executive of the managers Vincent Yeo said when announcing the deal on Thursday (May 4).
"Manchester is one of the most important cities outside of London with a buoyant economic outlook, and the hospitality market is supported by a strong mix of corporate and leisure demand."