The Hut Group acquires Manchester hotel chain
The Hut Group has acquired the Eclectic Hotel Group for a reported price of £50m.
It’s the latest move into the sector by the online beauty and wellbeing retailer, which acquired Hale Country Club and Spa in 2016.
“We are delighted with this recent acquisition, which comes at an exciting time for THG,” explained Matthew Moulding, Founder and Chief Executive Officer of The Hut Group.
“As a fast-growing, brand-led business we are always looking to develop innovative approaches to drive greater engagement with our customers and today’s acquisition is testament to that strategy. With consumer behaviour continuing to evolve away from the traditional high street setting, these two highly prestige hotels will be instrumental in showcasing our leading Beauty and Wellbeing brands.”
The hotel group is comprised of King Street Townhouse and Great John Street Hotel. They provide THG with 70 hotel rooms and events spaces.
It was acquired from founders, Eamonn and Sally O’Loughlin of Group Interior Designer, who will continue to own and manage Didsbury House Hotel and Eleven Didsbury Park, both of which were hived out of the Eclectic Group prior to completion.
“Without the support and commitment of our many fantastic employees over the past 20 years none of this would have been possible,” said O’Loughlin.
“A massive thank you to them. While it has been a difficult decision for us to take, we feel both hotels are going into the best of hands with Matthew and his team and we are extremely proud of the portfolio that we have built over the years.”
THG said that the hotels would form part of its “growing marketing infrastructure” which delivers “enhanced consumer experiences, influencer and brand-led events as well as content creation.”
The investment will also be supported by a £10m refurbishment upgrade plan.
In April, The Hut Group announced a $1bn banking facility, which was to be used to support “major investments in beauty, technology and infrastructure.”