L+R's Atlas Hotels buys Chardon Group's six Scottish properties with £200m earmarked for expansion
L+R's Atlas Hotels has acquired the Chardon Group of six hotels located across Scotland for an undisclosed sum, with £200m earmarked for further expansion.
The portfolio comprises six properties totalling 569 bedrooms, including Holiday Inn Express hotels in Dunfermline, Edinburgh Airport, Edinburgh's Royal Mile, Glasgow city centre (pictured) and Perth.
The purchase of Chardon Group sees the Atlas portfolio increase to 60 UK sites with more than 7,400 bedrooms.
Sean Lowe, chief executive of Atlas Hotels, said: "Our decision to acquire the Chardon hotels reflects our ambitious growth strategy to become the leading multi-brand platform for select service hotels in the UK, and we are excited to welcome the teams into the wider Atlas family.
"Despite the tough challenges of trading through the pandemic, our portfolio has remained cash positive, demonstrating the resilience of this sector. Our operating model has allowed us to quickly integrate new assets and provide a stable platform for recovery and growth. Supported by L+R Hotels we were able to provide an efficient exit route to Chardon's successful owners."
L+R acquired the 47-strong Atlas Hotels chain in 2016 for a reported £575m. Now based at its new headquarters in Leicester, Atlas is the largest franchisee of IHG Hotels & Resorts-branded hotels in continental Europe.
Desmond Taljaard, managing director of L+R Hotels, said: "We have earmarked over £200m to expand Atlas Hotels. We are actively seeking to add existing hotels, along with conversion and development opportunities. We want to be the easiest buyer to deal with, as we seek to grow this key sector for L+R Hotels. Working with Atlas management team enables us to underwrite, transact and integrate new hotels very efficiently."
The Chardon Group was founded in 1972 by Scottish hotelier Maurice Taylor.
Nicola Taylor, chief executive and owner of Chardon Group, said: "As a family, we have devoted most of our working lives to the hospitality industry. We have enjoyed great success, but my parents agree with my decision that it is now time for us to step back.
"With the sale, we have ensured the company remains in the very best of hands. Atlas is fully committed to the hospitality sector. The Atlas family of hotels share our integrity and values so we have no doubt this, coupled with their experience and expertise, will result in a very bright future.
"On a personal level, the success Chardon has enjoyed over the years is, in large part, down to the hard work and commitment which was continually shown by the team. Everyone played their part in making it a business to be proud of and we, as a family, thank them for that."
Atlas Hotels' portfolio comprises 56 Holiday Inn Express hotels, two Hampton by Hilton hotels, one Park Inn and one Holiday Inn. The group was formed following the merger of Somerston Hotels and Morethan Hotels in 2015 by private equity firm Lone Star.
L+R, owned by brothers Ian and Richard Livingstone, owns and manages a hotel portfolio with approximately 21,150 bedrooms across the UK, Continental Europe, the US and the Caribbean. Its portfolio includes the Iconic Luxury Hotels group, which in the UK runs hotels such as Chewton Glen in Hampshire, Cliveden House in Berkshire and the Lygon Arms in Worcestershire as well as 11 Cadogan Gardens and the Mayfair Townhouse in London. L+R also owns London hotels including the Hilton Park Lane, Trafalgar St James, Nobu Hotel London Portman Square, the Strand Palace and the Hard Rock hotel.
