Hotel investments provide opportunity for a good level of regular annual income, which should rise as the asset management efficiencies are generated – leading to capital growth following the increase in profitability.

We currently manage hotels across the UK and Ireland, including the Holiday Inn Express in Folkestone (located seven miles from the Channel Tunnel terminal) and the Marine Hotel in Troon – which hosted the 2016 UK Open Golf Championship.

Strategy

Working closely with our asset managers, we aim to acquire interests in under-valued and under-performing hotels. These are primarily in key strategic locations outside of London, where opportunities exist to rebrand and/or reposition them – to enhance trading revenues, generate strong annual cash yields, and significantly improve capital value.

Our hotels typically benefit from a franchise agreement with a branded hotel chain – for example Holiday Inn – and are run day-to-day by local staff, overseen by an experienced hotel management company.

Our partners have a proven track record in originating and completing hotel acquisitions in the UK. Together, they provide a comprehensive service which includes deal origination, the provision of debt finance and post-acquisition, as well as the asset management of the hotels. We fund the acquisition of hotels with no more than 50% funding from lending banks – but if investors do not want to participate in this trade, then it can be noted on their Application Form.

Security

A hotel partnership acquires the freehold, or long leasehold, interest in each hotel – with full title at the Land Registry. These type of assets underpin the security of capital afforded by this trade. Our partners have a proven track record in originating and completing hotel acquisitions in the UK and will provide a comprehensive service – including deal origination and the provision of debt finance. Post-acquisition, they will then manage the hotel assets.

Example Investment: Murrayshall Country House Hotel & Golf Club, Perth, Scotland. Acquired November 2016.

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Meet Our Investment Managers


Charles Scudamore

Charles formed Hetherley Capital Partners in 2012. He has more than 15 years’ experience in hotel real estate investment, finance, hotel operations and development, as well as hotel asset management and business strategy.

As principal, Charles overseas the Hetherley team in all aspects of the business, including deal origination, investment analysis and asset management of the existing portfolio. Charles heads up investor relations for Hetherley and acts as the primary point of contact for all strategic partners of the business. He also takes a leading role in business development, with a particular focus on expanding Hetherley’s investor base through corporate JV partnerships.

Prior to establishing Hetherley, Charles spent 10 years advising private and corporate investors in hotel investment, development and feasibility with TRI Consulting (acquired by CBRE Hotels). In that time, he built up a detailed understanding of the UK and Irish hotel markets, and is now a regular contributor to Pan-European hotel industry conferences – travelling extensively to assess investment opportunities for Hetherley and its capital partners.

Charles received his BSc (Hons) undergraduate degree from Surrey University in 2002. He is married with three children and enjoys most sports that keep him fit and active. He is a regular charitable donor and has undertaken a number of challenges raising money for selected charities, including GAIN, Cancer Research UK and MIND.

Hotel investments are accessible through the following services:

Stellar Business IHT Service

A discretionary managed service which provides numerous succession planning and tax efficiency options for business owners – either following the sale of a company, or to invest excess company capital to maintain tax efficiency.

Stellar Growth IHT Service

This discretionary managed service involves the creation of a privately owned limited company for each investor, to access a portfolio of asset-backed Investment Sectors – targeting 5% growth per annum.

Stellar Income IHT Service

An asset-backed discretionary portfolio targeting a 4.5% income per annum, without reducing the capital – distributed bi-annually as a dividend.