Scottish hotels group Macdonald Hotels has completed the sale of the landmark Rusacks Hotel in St Andrews for an undisclosed sum.
Deputy chairman Gordon Fraser said: “This is a superb deal for the business, which allows us to reduce our borrowings significantly while we progress a number of very positive options for the refinancing of the group.”
The firm has sold the famous Fife hotel along with the leasehold interest of the Randolph Hotel in Oxford to Chicago-based AJ Capital Partners.
Fraser added: “The scale of the deal reflects both the long-term performance and enormous potential of these landmark properties and I am confident they are in very good hands.”
Macdonald Hotels, founded 30 years ago, has grown from its roots in the North-east of Scotland and now comprises 39 properties throughout the UK and Spain, employing some 3,000 people. AJ Capital Partners’ Graduate Hotels brand operates 21 hotels.
No financial details were disclosed.
AJ Capital said it was set to "completely renovate" Rusacks, which is located overlooking the 18th hole of the Old Course. Once renovations are completed in summer 2021, the "reimagined" hotel will debut with an additional 44 rooms and a rooftop bar and restaurant with panoramic views of the course and coastline.
Ben Weprin, CEO and founder of AJ Capital Partners, said: "St Andrews is one of the most iconic destinations in the world, and our team is honoured to embark upon bringing our unique approach to hospitality to this incredibly historic and inspiring community.
"We look forward to creating an experience for both guests and locals alike that celebrates and commemorates St Andrews’ storied past for years to come."
The hotel is expected to open in time for the 150th Open Championship in July 2021.