MACDONALD Hotels has agreed to sell two major properties, including the 156-bedroom Macdonald Holyrood, to funds managed by London-based private equity firm Zetland Capital Partners.

The other hotel being sold is the 338-bedroom Macdonald Manchester Hotel.

The proposed deal, for an undisclosed sum, is described as “one of the largest hotels transactions completed outside of London in 2021”. The hotels will be managed by Zetland’s joint venture partner, Hamilton Hotel Partners.

Aaron Falls, Chief Financial Officer, Macdonald Hotels & Resorts, said: “The successful sale of these well-known hotels is a major milestone in our strategic business plan, which will see a substantial reinvestment in upgrading the remainder of our 28-strong hotel portfolio and nine resorts, together with further debt reduction.”

Ahmed Hamdani, managing partner at Zetland Capital Partners LLP, said: “We are delighted to have acquired these two very well located hotels in prime UK cities. Our strategy is to provide significant investment to refurbish and reposition these hotels. This acquisition aligns with our investment strategy to purchase and invest in well-located hotels across the UK, where we can materially enhance the product offering and benefit from the recovery of demand in the UK’s key cities.”

Frank Croston, Partner at Hamilton Hotel Partners added: “We are delighted to be expanding our partnership with Zetland through the acquisition of these two hotels in two of the UK’s strongest markets. We are looking forward to working with Zetland and the hotel teams to invest into and reposition these hotels.”