Hotel sold, but staying open for now

Thursday 19 September 2019

The L'Erée Bay Hotel has been sold to the same property developer which recently bought the former Data Park site in the Vale.

Both are now under the ownership of the RED Fund, which is described as a 'real estate developer which is backed by private investors all with Channel Islands' links'.

The hotel itself was owned by Randalls Brewery and most recently was being managed by Quin Hamon, who is believed to be staying on to run the hotel and its bars, including Teddy's Diner, which are all staying open 'for the time being'.

The decision to sell the hotel, car park and land, was made after the amount of investment needed in the facility became clear.

"After a comprehensive review of our properties, it was clear that L’Erée Bay Hotel needed significant investment in order to have a viable future. It made sense for us to look for a buyer who had the funds and desire to redevelop the site and to use the proceeds of the sale to invest in our other hotels and eateries," said R W Randall Managing Director Ian Roger.

"We are delighted that the site will continue to be locally owned and that the new owners had no objection to the hotel remaining open. This will allow the operator to honour their bookings and continue to operate Teddy’s Diner which has been a huge success since it opened this year."

The 36-bedroom hotel, with a swimming pool and car park is on the west coast, just across the road from L'Erée Bay. 

It's now owned by RED fund, which was established in 2018 and 'focuses on commercial and residential property development opportunities in the Channel Islands'.

In December 2018, the RED fund made its first acquisition of three office properties in Jersey and it recently announced that it had bought the 14.67 acre former Data Park site off Route Militaire in Guernsey. That site has lain dormant for many years without any work starting to redevelop it, but Chairman of the RED fund Andrew Haining suggests that could change in the future.

He said he was delighted the RED fund had purchased its second site in Guernsey and that it wants to 'maximise' the potential of the land it owns.

Pictured: The Data Park site on Route Militaire was sold last month. 

"The fund brings together a small group of like-minded investors who either live in the Channel Islands or have very close local links and want to use their collective investment to identify, realise and maximise development opportunities," said Mr Haining.

"Many of the ones currently being considered share the same characteristics as the L’Eree Bay Hotel site in that investment is required to unlock its potential. Our hope is that those with potential will ultimately deliver real benefit for the Channel Islands." 

Mr Haining said that the RED fund board and its advisers would now be looking at how the L’Erée Bay Hotel site could be redeveloped given its prominent West Coast location and close proximity to areas of ecological and environmental importance.

Watts & Co negotiated the deal between the two parties. Managing director Jo Watts said it was pleasing to see the sale go through court.

"Matching a buyer with a vendor for a property which is not even on the market can be challenging. Watts & Co has been working with the RED fund team since it was established and it’s fantastic to see the commitment they have to the property market and investment they are prepared to make in the Channel Islands," she said.

Pictured: L'Erée Bay Hotel.