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Bespoke Hotels buys Coulsdon Manor as Croydon council looks to reduce debt

4.00pm 2nd August 2021 - Property

Coulsdon Manor Hotel and Golf Club in Surrey has been sold to its leaseholder, Bespoke Hotels, due to the local authority’s financial crisis.

Croydon Council effectively declared itself bankrupt last year, owing debts of about £1.5 billion, and it has been forced into selling off various assets, including the golf club, to reduce its huge debts.

Coulsdon Manor, which boasts an 18-hole golf course and a 42-bedroom hotel, has been owned by the Labour-run council since the 1930s. It has been leased by Bespoke Hotels since 1999, with the golf course let for a rent of around £19,000 a year, based upon a percentage of the turnover income.

The hotel group paid an initial premium of £150,000 when taking on golf course and a £600,000 for the hotel, with the latter subject to a peppercorn annual rent. Both had 103 years remaining on a 125-year lease.

No details about how much Bespoke Hotels paid for the freehold of the golf course and hotel, but both are to carry on business as usual.  

A council report stated that ‘all assets have been valued by an external valuer as part of the disposal process and the terms agreed have been approved by the head of asset management before being put through the formal governance process’.

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