In a strategic move to strengthen its footprint in the UK hospitality market, KE Hotels has officially acquired the Queens Hotel Cheltenham, a landmark property formerly part of the Sutton Hotel Collection. The acquisition was completed through the administrators Crowe and marks KE Hotels’ fifth owned hotel in the UK, bringing its total portfolio to eight properties—five owned and three managed under franchise agreements with global hospitality giants like IHG and Marriott.
The acquisition not only reflects KE Hotels’ robust growth trajectory but also positions the company as a serious player in the competitive UK luxury and boutique hotel sector.
A Regal Heritage in the Heart of Cheltenham
The Queens Hotel Cheltenham, located prominently on Promenade beside Imperial Gardens, is an iconic heritage hotel that has graced the spa town since the 19th century. Built on a lush 1-acre site, the property has long served both leisure and business travelers seeking luxury accommodation in one of England’s most picturesque towns.
The hotel had been part of a trio alongside The Francis Hotel in Bath and The Castle Hotel in Windsor, operated under the Sutton Hotel Collection since 2017. The group, founded by the late Sir Richard Sutton, was known for curating premium British hospitality experiences with a strong emphasis on history, charm, and location.
Strategic Vision from KE Hotels Leadership
Josh Watts, Chief Operating Officer at KE Hotels, expressed enthusiasm about the acquisition. “We’re privileged to add the Queens Hotel Cheltenham to our expanding UK portfolio. This is a historically significant property in one of Britain’s most elegant spa towns. We look forward to enhancing the guest experience through strategic investment and by working collaboratively with the existing team to preserve its heritage.”
Anil Khanna, Managing Director of KE Hotels, described the purchase as a “milestone” in the company’s UK growth strategy. “This acquisition is in line with our vision to own and operate premium properties in key locations. Cheltenham offers both leisure and business tourism potential, and we are proud to be stewards of such an important piece of British hospitality heritage,” he said.
Leadership Changes Reflect Transition
The sale has triggered key leadership shifts, including the departure of Shaun Bowles, who had served as cluster general manager since November 2021. His exit marks the beginning of a new management era for the property under KE Hotels.
The previous owner, Sutton Hotel Collection, began a significant corporate restructuring earlier in 2025, which led to several notable departures—including long-serving general manager Joanne Taylor-Stagg, and cuts across HR and finance roles. The restructuring hinted at a more focused approach by the Sutton family towards their core assets, particularly The Athenaeum in London, which they continue to retain.
Former Sutton Hotels Director William Gibbs also exited the company in late 2024, underscoring a broader leadership and strategy shift within the Sutton family’s hospitality operations.
Preserving the Legacy, Upgrading the Experience
KE Hotels has emphasized its commitment to preserving the historic charm of the Queens Hotel Cheltenham while implementing upgrades to meet 21st-century guest expectations. Future plans may include sustainability enhancements, technology integrations, and refreshed dining and wellness offerings, aligning with the company’s aim to deliver authentic yet modern hotel experiences across its properties.
The acquisition also reflects growing investor interest in UK spa towns like Cheltenham, which continues to attract both domestic and international visitors due to its Georgian architecture, cultural festivals, and proximity to the Cotswolds.
Cheltenham’s Tourism Potential Gets a Boost
According to Visit Cheltenham, the town receives over 2 million visitors annually, many drawn by the Cheltenham Literature Festival, Gold Cup horse racing, and its architectural beauty. The Queens Hotel, due to its central location, is ideally placed to benefit from this tourism influx.
KE Hotels’ investment is likely to bolster Cheltenham’s hospitality infrastructure, supporting local jobs and increasing high-spend overnight tourism, in line with objectives outlined by the UK’s Department for Digital, Culture, Media & Sport (DCMS) to enhance regional tourism economies.
A New Chapter for KE Hotels
The acquisition of the Queens Hotel is part of KE Hotels’ broader vision to create a diverse portfolio of properties that combine heritage, luxury, and modern appeal. The company’s blend of direct ownership and strategic franchise management allows it to operate efficiently while adapting to shifting market conditions across different regions in the UK.
With the Queens Hotel now under its umbrella, KE Hotels strengthens its position as an emerging leader in the UK’s boutique and lifestyle hotel segment.
Conclusion
The acquisition of the Queens Hotel Cheltenham is more than a simple property deal—it signals the rise of KE Hotels as a key player in Britain’s evolving hospitality scene. As Sutton Hotel Collection narrows its focus, KE Hotels steps forward with confidence, ready to modernize tradition while preserving the timeless character of British heritage hotels. For Cheltenham’s tourism industry and its global visitors, the future looks promising with this historic landmark entering an exciting new chapter.
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