Investment firms KKR and The Baupost Group have partnered to acquire a portfolio of 33 Marriott International hotels across the UK from a subsidiary of the Abu Dhabi Investment Authority.
KKR, through its value-add and opportunistic European real estate strategy, alongside the Baupost have invested an unspecified amount to buy the 6,500 key portfolio of full-service properties located in London and other regional cities including Edinburgh, Glasgow, Leeds and Liverpool.
KKR said its European hospitality platform Amante Capital will manage the Marriott-branded portfolio on behalf of the joint venture.
Mai-Lan de Marcilly, managing director and head of transactions France and Hotels at KKR, said: “Our purchase of this impressive portfolio reflects our conviction in the UK and the opportunity we see to invest behind strong fundamentals and long-term growth in the European hospitality sector.
“With Amante Capital we have built the capabilities to be a scaled acquirer and operator of premium hotels across Europe. This is our second investment with Marriott International in Europe and expands our global relationship as well as making us the largest owner of premium segment Marriott International hotels in EMEA.”
Nick Azrack, partner, The Baupost Group, said: “This venture highlights our continued opportunistic approach to investing in high-quality assets. We are excited to collaborate with Amante, KKR and Marriott International on the future of these hotels.”
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