Fuller, Smith & Turner to buy Cotswolds Inns & Hotels for £40m

The deal comprises a collection of seven freehold country inns and hotels and eight freehold staff cottages in the Cotswolds, as well as two leasehold bars in Birmingham's city centre. It is expected that all employees will transfer with the acquisition.

An eighth hotel - The Broadway Hotel - does not form part of the deal and is being retained by the current owners.

Founded in 1997, Cotswold Inns & Hotels generated revenue of £17.5m and earnings before interest, tax, depreciation and amortisation of £3.4m in the year to the end of September 2018.

Fuller's chief executive Simon Emeny said: "The inns and hotels being acquired are all iconic, character properties in sought-after locations in the Cotswolds. They will further enhance our existing portfolio of premium hotel accommodation, adding 201 stylish bedrooms.

"A number of the sites have further development potential and Cotswold Inns & Hotels benefits from an established function business, spanning both leisure and corporate custom as well as weddings. We expect to realise further benefits from bringing the properties into Fuller's and for the acquisition to be earnings accretive in the first year."

The deal is expected to complete at the end of the month.

At 1120 BST, the shares were down 1.5% at 1,020p.