Shoosmiths advises Palatine and Bridgepoint on sale of Hallmark Hotels to Topland Hotels

Shoosmiths has advised Palatine Private Equity and Bridgepoint Development Capital on the successful exit of their investment in Hallmark Hotels Group.

Palatine and Bridgepoint established the Hallmark Hotels Group in October 2007 to pursue a buy-and-build strategy of acquiring underperforming three-star hotels and converting them into four-star luxury hotels.

Since then, the group has made eight acquisitions of hotels in Manchester, Carlisle, Derby, Bournemouth, Hull, Croydon and Gloucester. Shoosmiths has advised the group on the last two of these acquisitions (corporate partner Mark Dawson having brought Hallmark as a client from his previous firm where he acted on the initial investment and other acquisitions).

This transaction sees the Hallmark Hotels Group, which now consists of eight four-star hotels across the UK, acquired in a circa £75m deal by Topland Hotels.

The Shoosmiths transaction team was led by partners Dawson and Karen Procter (corporate) with support from solicitor Kelly Harvey (corporate), senior associate Tom Wilde (tax) and partner Karen Fletcher (employment), while the property aspects were led by partner Andrew Pattinson (real estate).

Hallmark Hotels is the fourth successful exit from Palatine’s maiden fund following the sales of Air Energi in 2012 and XLN Telecom in 2010 (on which Shoosmiths also advised).