Oldham hotel acquired by Asian hospitality firms

Asian hotel operators Compass Hospitality Group and Seacare have jointly acquired the Victoria Hotel on Hollinwood Avenue, Oldham.

Supported with undisclosed funding from the Royal Bank of Scotland (RBS), the multi-million pound investment sees Bangkok-based Compass add an eighth hotel to its growing UK portfolio.

The company has partnered with Singapore firm Seacare to purchase UK hospitality businesses on several occasions, last pairing up in August 2015 to acquire the Big Sleep Hotel’s network across Cheltenham, Eastbourne and Cardiff.

The Victoria Hotel, originally built as a manor house, has now been transformed with refurbished bedrooms and enhanced space for food and drinks.

The president and CEO of Compass, Harmil Singh, commented: “Within 12 months of our entry into the UK market in April 2015, we now have eight hotels under management in the UK.

“The Victoria Hotel marks an important milestone and we intend to build on our market presence here.”

Stan Harris, a partner at London-based Lyndales Solicitors, provided legal advice to Compass during the transaction. Colin Rodrigues of Dudley law firm Hawkins Hatton acted for RBS.

The executive vice president of Compass’ UK operations, Matthew Welbourn, said: “The Royal Bank of Scotland supported our acquisition of three Big Sleep Hotels last year and enabled us to secure a presence across the South of England.

“We are delighted they have repeated their investment by allowing us to expand our brand in the North West which fully supports our strategy of ongoing investment.”

He continued: “Looking forward, we really want to put Compass Hospitality on the European map as a Bangkok-based firm offering a full service of operational and online management and partnering owners in the acquisition, funding and development of UK hotel assets - with Royal Bank of Scotland on board we can achieve this.”

Ian Morgan, a relationship director in RBS’ hotel and leisure team, said the bank is delighted to support Compass as it strengthens its foothold within the UK’s hospitality sector.

He added: “We have no doubt [the Victoria Hotel] will prove a profitable addition to the Compass Hospitality Group portfolio.”

In addition to the Big Sleep Hotel sites and its latest acquisition in Oldham, Compass also runs the Lion Hotel Shrewsbury, the White Swan Halifax, Oxford’s Hawkwell House Hotel and Nottingham’s Lace Market Hotel.

Across its Thai homeland and Malaysia, the company manages around 40 hotels.