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Fuller’s Buys Cotswolds Inns & Hotels for £40m

London-based pub and hotel firm Fuller, Smith & Turner (otherwise known as Fuller’s), has swallowed up Cotswolds Inns & Hotels for £40m (€46.3m).

The deal sees Fuller’s take over seven freehold country inns and hotels and eight freehold staff cottages in the Cotswolds, as well as two leasehold bars in Birmingham’s city centre.

An eighth site, the Broadway hotel, is not part of the deal and is being retained by Cotswold Inns & Hotels founders Michael and Pamela Horton, who started their business in 1997.

In the financial year ended 30 September 2018, the properties being acquired generated revenue of £17.5m (€20.3m) and site earnings before interested, depreciation and amortisation (EBITDA) of £3.4m (€3.9m) with a gross asset value of £31.5m (€36.5m).

Fuller’s will use existing banking facilities to fund the deal and is expected to complete on 31 October 2019.

Fuller’s chief executive Simon Emeny said: “The inns and hotels being acquired are all iconic, character properties in sought-after locations in the Cotswolds. They will further enhance our existing portfolio of premium hotel accommodation, adding 201 stylish bedrooms.

“A number of the sites have further development potential and Cotswold Inns & Hotels benefits from an established function business, spanning both leisure and corporate custom as well as weddings.  We expect to realise further benefits from bringing the properties into Fuller’s and for the acquisition to be earnings accretive in the first year.

“Quintessentially English and renowned for a focus on fresh food, premium accommodation and an exceptional level of customer service, this collection of seven iconic country hotels is highly complementary with our existing strategy.”

Fuller’s runs around 380 pubs across the south of England, including 180 managed pubs and hotels and 200 tenanted sites.

Its pubs stock well-known beer brands such as London Pride brewed in the Griffin Brewery in Chiswick. Earlier this year, Fuller’s sold its entire beer, cider and soft drinks brewing and production and wine wholesaling business to Japanese brewer Asahi Group for £250m (€215.9m).


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