Stellar announces successful sale of The Marine Hotel, Troon

We are pleased to announce the successful sale of The Marine Hotel in Troon. Having purchased the hotel in December 2015, we successfully disposed of the asset at the beginning of Q4 2020 on behalf our Stellar Income Inheritance Tax (IHT) Service investors.

The 89-room hotel is situated on the west Ayrshire coast, overlooking the 18th hole of the Royal Troon Golf Club.

The sale price achieved compared very well to the price paid on acquisition. As a result, we are delighted to confirm that the disposal of this hotel has resulted in an Internal Rate of Return (IRR) of 15%. This is a considerable uplift on the service’s target return of 4.5%. This gain has now been reflected in the price of the Stellar Income IHT Service.

Notable success in a time of uncertainty

The hospitality industry has been one of the hardest hit throughout 2020. Hotels have faced a host of unforeseen challenges with lockdowns and travel restrictions common since the COVID-19 pandemic began.

This disposal constitutes a real success, not least because we have achieved a sale price that has resulted in an IRR considerably above target.

In selling this hotel, we have now reduced the Stellar Income IHT Service’s exposure to an asset class impacted by the pandemic which is likely to remain in a position of uncertainty over the coming months.

This disposal affords us the opportunity to commit investor capital to new investments. These investments can provide greater security whilst continuing to generate the income and capital growth that the Stellar Income IHT Service’s investment mandate seeks to produce.

What is next for the service?

Since disposing of The Marine Hotel in Q4 2020, we have utilised a portion of the proceeds to invest into a new bridging finance partnership, Sky Chrome Partnership.

We are excited about this opportunity, having successfully delivered strong returns with similar bridging partnerships in our other services in the past.

This partnership provides a good opportunity to invest into a sector that we have experience in. We are also working alongside a JV-partner whom we have worked with successfully for many years.

We continue to explore other opportunities across several asset classes to further bolster the Stellar Income IHT Service.

Whilst investors will be aware of the unprecedented challenges presented by the pandemic, it will also give rise to opportunity. At Stellar, we continue to be fully committed to optimising the Stellar Income IHT Service whilst protecting the best interests of our investors.

To find out more information about the Stellar Income IHT Service and how it could work for your clients, click the link below.

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Written by David Stein and Jack Dobinson


Important Information

Stellar Asset Management Limited does not offer investment or tax advice or make recommendations regarding investments. Prospective investors should ensure that they read the brochure and fully understand the risk factors before making any investment decision. The value of investments and the income from them may fall as well as rise and is not guaranteed. No assurance or guarantee is given that any targeted returns will be achieved. Forecasts of potential future results are not a reliable indicator of actual future results.

Stellar Asset Management Limited of Kendal House, 1 Conduit Street, London W1S 2XA is authorised and regulated by the Financial Conduct Authority.