The acquisition, for an undisclosed sum, is one of the largest hotels transactions completed outside of London in 2021; the hotels will be managed by Zetland’s JV partner, Hamilton Hotel Partners.

Ahmed Hamdani, managing partner at Zetland Capital Partners LLP, said: “We are delighted to have acquired these two very well located hotels in prime UK cities. Our strategy is to provide significant investment to refurbish and reposition these hotels. This acquisition aligns with our investment strategy to purchase and invest in well-located hotels across the UK, where we can materially enhance the product offering and benefit from the recovery of demand in the UK’s key cities.”

Frank Croston, partner at Hamilton Hotel Partners, added: “We are delighted to be expanding our partnership with Zetland through the acquisition of these two hotels in two of the UK’s strongest markets. We are looking forward to working with Zetland and the hotel teams to invest into and reposition these hotels.”

Aaron Falls, chief financial officer, Macdonald Hotels & Resorts, commented: “The successful sale of these well-known hotels is a major milestone in our strategic business plan, which will see a substantial reinvestment in upgrading the remainder of our 28-strong hotel portfolio and 9 resorts, together with further debt reduction.”

Rob Stapleton, head of hotel transactions at Savills, said: “We’re pleased to have advised on this significant transaction in two key UK markets. In spite of the uncertainty caused by COVID, the opportunity generated significant interest from the market. It was a pleasure working alongside the management team at Macdonald Hotels & Resorts and with Zetland to conclude this deal.”

Zetland Capital Partners were advised by Burgess Salmon (UK Legal), KPMG (Tax and Finance), EY (Structuring), Christie & Co (Commercial), Lockton (Insurance), Chandler (Technical), Nova Ambiente (Environmental), Westfort Advisors (Debt) and Arendt (Luxembourg Legal).

Macdonald Hotels & Resorts were advised by Savills, CMS Cameron McKenna Nabarro Olswang (Legal) and Alvarez & Marsal (Tax).

Starwood European Finance Partners Limited financed the acquisition and were advised by White & Case.