Hospitality firm The Inn Collection Group is set to invest significantly into its fast-growing portfolio following a new £42m investment.
The Alnwick based business, first launched in 2006, has been executing a rapid “buy and develop” growth strategy over the last few years, seeking to expand outside its heartland North East to increase its pubs-with-rooms portfolio.
In 2019 the group outlined plans to grow from around 10 pubs to 21 sites, after receiving a £10m funding package from investors OakNorth.
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Since then it has more than achieved that goal with a total of 26 sites across Northumberland, County Durham, the Lake District, Lancashire, Yorkshire, Tyne and Wear and North Wales, taking its room tally from 271 to more than 1,000.
Now OakNorth, the UK bank for entrepreneurs, has provided the business with a £42m loan to refurbish 13 of the inns in its portfolio and support continued redevelopment of the current property portfolio and capitalise on the growing staycation market.
The move comes after accounts revealed the group’s plans to continue its expansion, adding up to eight new sites a year.
Acquisitions include The Black Swan in Helmsley and The Pheasant Inn in Bassenthwaite, both of which were funded via the OakNorth Bank capital and have now reopened after substantial refurbishments.
The Inn Collection Group’s aim is to provide accommodation, food and drink to leisure and business customers, It is backed by British private equity firm Alchemy Partners.
Sean Donkin, managing director of Inn Collection Group, said: “Covid has of course been hugely challenging for the sector, but as with any good business, we’ve tried to find opportunity in times of turmoil.
"That is why we are keen to continue developing our portfolio with sites that fit with our proposition of providing high-quality accommodation, service, food and beverages.
“There’s a reason why this is the third time we’ve worked with OakNorth Bank – the team know what they’re doing, understand our business, and deliver on their promise of speed and flexibility.”
Stuart Blair, debt finance director at OakNorth Bank, added: “We’ve been very impressed by the evolution of Inn Collection Group - over the years, it has continued to build a quality portfolio, balancing ambitious and strategic growth with achievable and sustainable results.
"With more than 19 years experienced in the hospitality sector, Sean has an outstanding track record, and over the last 18 months, has bolstered management with both a CFO and Operations Director.
“This has evidently yielded results both in terms of positive trading at all new sites - a clear indication of strong site selection - but also in the Group’s ability to acquire quality sites throughout Covid at competitive entry prices.
"The fact that the group has backing from Alchemy Partners speaks volumes about the quality of both its management team and future growth potential.”
