Pub group Fuller’s buys Cotswold Inns & Hotels for £40m
Pub group Fuller, Smith & Turner has agreed a £40 million deal to buy Cotswold Inns & Hotels.
Fuller’s said it has taken control of the hotel-focused business which consists of seven freehold country inns, eight freehold cottages and two leasehold bars in Birmingham.
Cotswold Inns & Hotels, which was founded in 1997 by Michael and Pamela Horton, posted revenue of £17.5 million for the year to September 2018.
Another hotel which is currently part of the business, The Broadway Hotel in Worcestershire, is not part of the deal and will be retained by the current owners.
Fuller’s previously outlined plans to invest in its portfolio after it secured £250 million from the sale of its brewery operations.
The London-listed pub group said the deal will be funded by Fuller’s existing banking facilities and is expected to complete on October 31.
Chief executive Simon Emeny said the company expects to see benefits from the acquisition imminently, with the move expected to boost earnings for the next year.
“The inns and hotels being acquired are all iconic, character properties in sought-after locations in the Cotswolds,” he said.
“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.”
Fuller’s handed £69 million back to shareholders last month after the completion of the sale of the Chiswick brewery arm to Japan’s Asahi.
Shares in Fuller’s dipped 1% to 1,025p in early trading.