Kendal hotel primed for £10m sale
Colliers has been instructed to find a buyer for the Castle Green Hotel, on the outskirts of the Lake District town.
One of a trio of Best Western hotels being marketed separately for a combined £18.5m, the Kendal asset is the pick of the bunch, offering 99 bedrooms out of the portfolio’s total of 240.
As described in Collies’ sales brochure, the Castle Green Hotel is set in 14 acres of landscaped grounds. Built in the 1890s, the main building was owned and expanded during the period 1949 to 1995 by Norweb, which used it as its area office, with around 300 people working from the base.
Following conversion, it was opened in 1997 as a 65-bedroom hotel, and was then expanded in 2000, the restaurant offer also being extended.
Castle Green is a four-star hotel with a two-AA-rosette restaurant and operates under the Best Western Premier Collection. The business is currently operated by a third-party management company alongside an in-house team, with Legacy Hotels & Resorts providing management under the Best Western membership.
The sale process follows a strategic review by shareholders as they seek to refocus on other business interests, said Colliers.
Stephen Broome, director of the ownership group, said: “Castle Green is a particularly strong regional hotel, combining an established trading business with an attractive location at the gateway to the Lake District.
“Its scale, facilities and diverse customer base make it an appealing proposition for investors looking to acquire a substantial hotel operation in one of the UK’s leading leisure destinations.”
Julian Troup, head of UK hotels agency at Colliers, added: “The Lake District continues to attract significant leisure demand, while Kendal’s connectivity provides an important year-round corporate and events market.
“Castle Green benefits from both, alongside its extensive grounds and established leisure and conference offering, creating a compelling opportunity for a new owner to take the business forward.”
Along with overnight accommodation, the hotel offers a business and training centre, conference and function room facilities, and leisure provision.
