Menzies to sell three-star hotels as major purchase draws near

Menzies Hotels has put the last of its three-star hotels on the market and is close to making a large acquisition in the four-star sector.The group, which recently raised £72m with the Royal Bank of Scotland to make "significant hotel acquisitions", has instructed FPDSavills to market the two properties.

It is seeking offers in excess of £1.5m for the 37-bedroom Angel hotel in the heart of Market Harborough, Leicestershire, which was the second hotel bought by Menzies.The asking price for the 33-bedroom Royal hotel in Scunthorpe, Lincolnshire, is £1.2m.

"As has recently been reported, we have a clear focus on expanding our four-star business and, solely for branding reasons, we have decided to dispose of the Angel and the Royal despite the fact they have consistently performed well for us over the years," said chairman Nick Menzies.

Their disposal will leave the group with 16 hotels. However, Menzies added that the group was just a week or two from making a significant purchase.