Peel asks £12.5m for airport hotel
Knight Frank has been instructed to find a buyer for the 160-key Hampton by Hilton at Liverpool John Lennon Airport.
In a sale process launched at the start of this week, Knight Frank has gone to the market to find a buyer for the long leasehold property, reporting “strong interest” so far.
The hotel opened in 2009 as part of a development project that also included a multi-storey car park.
Peel is offering it for sale as a transfer of a going concern, subject to the existing franchise agreement with Hilton Worldwide.
The hotel features a contemporary bar and restaurant, 100-cover dining area, three meeting rooms, and 60 dedicated guest parking spaces. All 160 en-suite bedrooms are arranged across the sixth to 11th floors. The hotel is held on a long-leasehold interest with around 109 years remaining with only a peppercorn rent payable.
Knight Frank said that the hotel has demonstrated stable and profitable trading performance, generating revenues just under £4m annually, adding that it is “ideally positioned” to benefit from LJLA’s growing passenger numbers, with the airport handling 5.08m travellers in 2024 and projected to surpass 5.5m this year.
The airport is also undergoing an ongoing £9m enhancement programme, revamping its retail and dining.
Ryan Lynn, partner within Knight Frank’s hotels team, said: “This is a rare opportunity to acquire a well-invested, strategically located airport hotel operated under a globally recognised brand.
“With strong existing cashflow, a stable franchise agreement, and upside potential from brand-led upgrades, we expect considerable interest from a range of UK and international investors.”
Owned by Peel but managed by Tower Hotels, a subsidiary of Peel Holdings.
By AH
What an ugly building!
By Anonymous
@ Anon 11.06pm, you say its an ugly building but it’s no different to hundreds of hotels I’ve seen abroad, it serves a purpose, are you expecting a Lutyens classic in this location.
By Anonymous
It’s an airport hotel in a regional city built for cost and value where most people just want a one night stay, its hardly likely to have been designed by Zaha Hadid or Renzo Piano althoough I agree it is ugly
By Anonymous
So because the hotel serves a function it’s OK for it to be ugly? I think we should expect a little bit more.
By Anonymous
Will Peel invest any sales revenue back into the Airport? Leeds/Bradford is having a £100m makeover,while Liverpool gets piecemeal add-ons, just not good enough for a fast growing airport that for the 2nd year is voted UK number 1 for satisfaction.
By Anonymous
Trust me , if Liverpool expands it will no longer be No 1in satisfaction.
By Anonymous
Liverpool is voted number 1 for satisfactory because of it’s size, if it was a big and busy as Manchester it would be just as awful
By Anonymous
Liverpool airport is fantastic, so easy to use!
By Lpool 16
Peel seems to be selling an awful lot of assets at the moment. Has any journalist thought to ask the company why? Or maybe even do a deep dive into its Group balance sheet?
By Anonymous
Happy to use the airport a lot, it’s a good complement to Manchester, but never been able to define what the business strategy is other than for it to be a regular cash cow for Peel, and for it not to absorb too much capital. The reverse is true of Manchester where it’s clear they want it to be a catalyst for regeneration and economic growth as well as make a decent economic return for the local authorities who partly own it. Manchester doesn’t always give you an amazing customer experience because it’s always in flux, so ends up being good in a bad way.
By Rich X