Warner Leisure Hotels has purchased two 4-star hotels; the Dalmahoy Hotel and Country Club near Edinburgh and the Forest of Arden Country Club near Birmingham.
Dalmahoy Hotel and Country Club – which is Warner Leisure Hotels’ first hotel in Scotland - is a four-star Grade A manor house located 30 minutes from Edinburgh city centre and 50 minutes from Glasgow. Set in over 1,000 acres, the 215-bedroom hotel comprises two golf courses, two restaurants, two bars, a leisure club, tennis courts and conference facilities.
The Forest of Arden Country Club is a four-star golf hotel, located in the Midlands and a 20-minute drive from Birmingham. The hotel is set in over 10,000 acres of woodlands and has 214 bedrooms, multiple lounges and bars, two golf courses including a championship course, tennis courts, a leisure club and conference facilities.
Bourne Leisure, owned by Blackstone-managed funds, has committed over £100 million in the acquisition and redevelopment of these two properties in what will be an extensive refurbishment programme ahead of their reopening as Warner Leisure branded hotels.
Prior to their relaunch under the Warner Leisure Hotels brand, Dalmahoy Hotel and Country Club and Forest of Arden Country Club will continue to be independently managed under their current proposition.
These acquisitions take Warner Leisure Hotels’ total portfolio to 18 hotels, representing over 4,000 rooms.
Why it matters
Warner Leisure’s interest in the Scottish market indicates positive sentiment in relation to the region and is yet another indicator of confidence in the Scottish luxury hotel market following Henderson Park’s £85 million acquisition of Waldorf Astoria Edinburgh – The Caledonian. For the first six months of 2023, transactions in the Scottish hotel market totalled £165 million, up significantly from £54 million recorded for the same period in 2022, according to data form Savills. Research published by Christie & Co also stated that by region, Scotland proved to be a standout player transaction-wise in the first six month of the year, benefiting from offering better value for money than many hot spot areas in England's South, attracting both large overseas investors seeking yield as well as small lifestyle purchasers looking for a bang for their buck.
Both acquisitions also further underline the hotel sector’s steady interest in luxury hotels as they continue to offer a good hedge against inflation. Since acquiring Bourne Leisure in 2021, which includes UK holiday park provider Haven, Blackstone has invested over £450 million across its holiday parks and hotels, further demonstrating Blackstone’s confidence in the robustness and growth potential of the domestic tourism market in the UK.
What they said
Paul Flaum, CEO, Bourne Leisure said: “We are delighted to add these two wonderful hotels to our portfolio, each with fantastic facilities and both in excellent locations, including our first ever hotel in Scotland. Our confidence in the future growth prospects of the company continues and we look forward to redeveloping the hotels to a high-quality signature Warner Leisure Hotels offering.
"The compelling brand and short break proposition, which includes entertainment, dining and daytime activities at the hotel, mean our guests continue to return to enjoy the unique experience that Warner Leisure Hotels offers. We very much look forward to introducing a whole new audience to the experience too.”
Lionel Assant, head of European private equity and James Seppala, head of European real estate at Blackstone said: “These acquisitions reflect our continued confidence not only in the UK domestic tourism sector but in the Warner Leisure Hotels brand. Acquiring these two landmark hotels marks the next step in the company’s growth story as we continue to look for opportunities to add high-quality hotels to the portfolio and to invest significant capital in repositioning them.”