Think Acquisition advises on the sale of Blue Palm Apartments to HCA Developments

Serviced accommodation business sale: Blue Palm sold to HCA Developments

Think Acquisition has sold Blue Palm, a Cardiff serviced accommodation business, to HCA Developments. We acted for the sellers from first valuation through to completion.

It is another deal in a part of the market we work in often: serviced accommodation, rent to rent (R2R), and holiday let management businesses. Operators built these fast over the last few years. Many of them are now ready to sell, and most have never done so before.

The business

Blue Palm runs serviced apartments in Cardiff, mostly around Pontcanna. Its guests are corporate bookings, contractors, relocating professionals, and film and TV crews. Furnished units, flexible stays, cleaning and bills handled. A short-let operation with real corporate demand behind it.

That is what makes a business like this worth buying. Recurring occupancy, repeat corporate accounts, and a team that knows the local market. For a buyer, acquiring that is faster and safer than building it unit by unit.

The buyer

HCA Developments bought Blue Palm to grow its short-term rental portfolio across Cardiff and South Wales, where it was already active.

"The acquisition of Blue Palm marks an important step for HCA Developments as we continue to grow our presence across Cardiff and the wider South Wales market," said Chris, Director of HCA Developments.

An established brand, a live portfolio, and a team that understands the market. A natural fit for an operator expanding in the area.

How we ran the sale

The seller came to us through a website enquiry, and after a couple of consultation calls to help them understand expected valuations, timelines, structures, risks, and best practices. After a couple of weeks, they were convinced we were the best broker for them. We engaged after they paid a small onboarding fee, and we got to work.

We ran a proper process: prepared the business, approached a targeted set of credible buyers, and created competition instead of leaning on one conversation.

The competition did its job. This came down to more than price. HCA won it on credibility and their plan for the business, not the biggest number. The right buyer and the right structure hold a deal together. A headline figure that collapses in due diligence does not.

"Our specialist network within the property services sector was instrumental in generating significant buyer interest," said Libby Jervis, Director at Think Acquisition.

From there we took the shareholders through negotiation, due diligence and completion, alongside Darwin Gray Solicitors and Marlan Glenn Associates on the legal side.

"It was a pleasure working with Think Acquisition. Having never sold a business before, they provided great support," the sellers said.

Selling a serviced accommodation, R2R or holiday let business

These businesses do not sell like a standard letting agency. The money is in recurring income and contracts that transfer cleanly. What a buyer checks depends on the model.

Serviced accommodation: occupancy, corporate and repeat accounts, the units, and how much runs through the founder. A book of long-standing corporate clients beats the same number of one-off bookings.

Rent to rent (R2R): the head leases and management agreements. How long they run, whether they transfer, and how landlord relationships hold up under new ownership. Clean, assignable contracts are what make an R2R business sellable.

Holiday let management: the managed portfolio and the owner contracts behind it. Retention, gross booking value, the split of managed versus owned stock, and the systems that run it.

Same rule across all three. Recurring profit and transferable contracts set the value. Preparation and a competitive process set the outcome.

Common questions

How do you sell a serviced accommodation business?

Get the recurring income clear on paper, evidence occupancy and corporate accounts, map which contracts and leases transfer, then run a competitive process so more than one buyer is at the table. We handle it end to end. Consider selling at the right time of year to maximise profits.

What is a rent-to-rent (R2R) business worth?

It's sustainable recurring profit, and the strength of its leases and management agreements. You are selling contracts a buyer can rely on after completion. Longer, cleaner and less founder-dependent means a stronger price. Buyers may be stripping everything out other than the contracts, so it's also useful to understand your buyers margins.

Can you sell a holiday let management business?

Yes. The value is the managed book, the owner contracts, and how well it runs without you. Buyers look at retention, booking value, the managed versus owned mix, and the team and systems. The biggest one here is churn rate.

Who buys these businesses?

Usually, other operators are expanding in a region, property groups are adding a short-stay arm, and investors are building a portfolio. HCA is a textbook case: already in the area, wanting to scale faster than they could build. On occasion, you may find buyers looking at geographical expansion also, so it's worth considering buyers out of the patch.

Thinking about selling or acquiring?

Serviced accommodation, R2R, holiday let management, letting or block management, the principles are the same. Preparation, a competitive process, and a buyer whose plan fits the business, not just their budget. We know these industries inside and out, at every level from £50,000 to £5m.

Most owners sell once. Worth getting right.

If you are planning an exit, or buying to grow in the property sector, get in touch with the team at Think Acquisition.

Email: Office@thinkacquisition.com

Phone: 02920 025852