Hotel Indigo, in the centre of Exeter – formerly the city’s House of Fraser store, has been put up for sale, React News can reveal.

Clifton Agency and Savills have been tasked with finding a buyer for the 104-bedroom hotel in the city centre, which carries a price tag of £24m.

Formerly a department store known as Colson’s before becoming a House of Fraser, the building was converted by current owners Exeter Hospitality, which completed the hotel with £20m of backing from Topland Group.

The boutique hotel opened last July and is being offered for sale on a freehold basis. It offers amenities including a gym, three food and beverage outlets, and four treatment rooms.

The hotel currently trades as IHG’s Hotel Indigo brand on a 20-year management agreement with Focus Hospitality. It also includes two retail units at ground floor level, which are let to Holland & Barrett and Mountain Warehouse on 10-year terms. Together, these generate £375,000 in rent annually.

James Greenslade, director, hotel capital markets, Savills:

“We have been instructed as joint agents with Clifton Agency to sell the Hotel Indigo Exeter on behalf of Hotel Exe Limited, now that the hotel has achieved practical completion. The opportunity comprises the freehold of the market leading hotel in the centre of Exeter as well as strong fixed income produced by two high street retail units. We expect strong interest from the market given the quality and significant upside potential on offer in a location which has high barriers to entry, strong corporate demand and excellent leisure demand drivers.”