AN HISTORIC hotel has been sold as part of a massive multi-million-pound deal.
The 700-year-old Dunkenhalgh Hotel in Clayton-le-Moors, which is one of Hyndburn's best-known buildings, has been sold by McDonalds Hotels and Resorts as part of a deal covering 24 of its hotels.
The hotels have been bought by Moorfield Real Estate Fund, part of the London-based Moorfield Group, for more than £400M but the group will not confirm how much it paid for the Dunkenhalgh.
The four-star hotel complex comprises 180 bedrooms, health spa, gym, solarium and swimming pool, as well as a treatment room, set in 17 acres of parkland.
Donald Macdonald, executive chairman of McDonalds Hotels and Resorts, said: "This is a significant transaction for us and one which we planned to execute when we took the company off the Stock Exchange and back into private ownership three-and-a-half years ago.
"Private ownership has enab-led our business to deliver a major capital expenditure programme of £166M over the last three years.
"I believe our guests and customers can see the continued and consistent upgrading in the high quality offered in our hotels.
"The hotel sector is a capital- intensive business and requires a longer-term view of investment. When it comes to creating long-term and sustainable value, developing our people and our hotels is much more important than any short-term profit."
Macdonald Hotels' Group Finance Director Gordon Fraser said: "We have made excellent progress in developing our existing and new hotels.
"It has, however, always been our intention to reduce our debt and to strengthen our balance sheet.
"The deal with Moorfield allows us to do just that and gives us the platform to realise the potential in our remaining portfolio and to be in a position to take advantage of new opportunities when they arise."
As part of the deal, the hotel will continue to be run by Macdonald Hotels and Resorts under a short-term management contract.
The firm will then bid for the long-term contract alongside other hotel companies.