A FOUR-STAR town centre hotel is on the market for nearly £9million as the owners look to enter 2023 debt-free.

The 95-bedroom Norfolk Royale Hotel has been put up for sale by owners Peel Hotels, as chairman Robert Peel said he wanted to clear the company’s £5million debts before the end of the year.

Mr Peel said the Norfolk Royale may not be sold, depending on whether any of their other hotels in their portfolio sell.

“Our bank is ceasing lending at the end of this year and we have got a huge debt with them,” Mr Peel said.

“The second thing is I am 75 years old now and I want to run a company with no debt at all so in that case we have to look at our portfolio of hotels and put them on the market.

“It could be that another hotel is sold so that the Norfolk Royale doesn’t get sold.

“Most companies are growing all the time, getting more debt and reinvesting, that is a young outlook.

“I have been in the business for 55 years, I am not saying I am retiring, it was just coincidental at the same time the bank said they were not going to lend us more money my board and myself thought now was the time to get rid of the debt.”

Mr Peel said the company had a debt of £5,150,000 and said if another hotel sold they wouldn’t sell the Norfolk Royale.

He continued: “I love the Norfolk Royale, they have lovely management there and it has always done really well for us.

“It’s a fantastic hotel, above average size bedrooms, a banquet room, swimming pool in a really good location.

“We’ve had it for ten years and I’ve been delighted with it.”

Christie & Co is managing the sale of the hotel, which was originally converted from two imposing Victorian villas.

Ed Bellfield, regional director, hotels at Christie & Co said: “The Norfolk Royale Hotel has an established reputation, appealing to predominantly leisure guests due to its close proximity to seven miles of golden beaches and the New Forest National Park.

“There is significant scope for an experienced owner/operator to invest in the site and benefit from its exceptionally unique and iconic location in the heart of Bournemouth.

“We expect the property to appeal to a wide range of buyers including those looking to purchase a single asset as well as those looking to expand their current portfolio.

“We also anticipate high levels of interest from both national and international investors attracted to the UK hotel ‘staycation’ market.”

The hotel is on the market for £8.5million.