BGF, the growth capital investor, has ended its investment in The Coaching Inn Group, which operates 18 hotels in traditional market towns across the UK.
The business was acquired by RedCat Pub Company, an investment vehicle that funds the UK pub industry.
Based in Boston, Lincolnshire, The Coaching Inn Group was founded in 1996 by CEO Kevin Charity.
BGF backed the group with an initial investment of £ 4.5million in 2015, before providing follow-up funding of £ 10million a year later to support a planned £ 50million expansion through the United Kingdom.
Over the past six years, The Coaching Inn Group has significantly expanded its portfolio by acquiring 11 locations. These include The Rutland Arms in Bakewell, The Golden Fleece in Thirsk and The Three Swans in Hungerford.
Gurinder Sunner, Head of BGF in the Midlands, said: “The BGF Birmingham team supported The Coaching Inn Group in 2015 to support its planned multi-million pound expansion across the UK.
“During this time, the company has grown steadily and has significantly improved the profitability of each site thanks to a strong and energetic management team, which has extensive experience in the hospitality market. .
“We are extremely proud to have supported the company by helping to accelerate the growth of the company and wish the team all the best for the exciting next step of their journey. “
As part of the sale, Kevin Charity will continue to lead and manage the business within RedCat, which provides operational expertise and capital investment to quality retail and leased pubs, as well as at pub-hotels. He recently acquired 42 pubs across England and Wales from Stonegate Pub Company.
Kevin Charity, CEO of The Coaching Inn Group, added: “We have created a proven formula, acquiring the right properties in the best locations and sensitively restoring them according to the character of their local environment.
“BGF’s investment has enabled us to achieve our growth plans without financial distractions or cash flow restrictions.
“Through the team we also met a number of high caliber senior executives in the hospitality industry who provided information and advice on our plans – this type of strategic support has been invaluable in helping us. to achieve our goals over the past six years. “