Castleforge checks into Hilton Cardiff

Financial details were not disclosed.

Matt Lederer, hotel acquisitions director at Castleforge Partners said: 'Our hotel strategy at Castleforge is to invest only in best in class value-add opportunities across the UK and European markets.

'Our decision to invest in the city of Cardiff and the Hilton Hotel are emblematic of this approach.'

Castleforge purchased the 197-bedroom hotel, located in the heart of the Welsh capital, from a private owner who had owned the hotel for 14 years.

Opened in 1999, the seven-floor Hilton Cardiff has views over Cardiff Castle and the city's Edwardian civic centre.

The deal follows Castleforge’s first investment in the hospitality sector in May when it acquired the Best Western Plus Bruntsfield Hotel in Edinburgh.

In 2020, Castleforge announced its intentions to enter the hospitality sector when it hired Lederer from Marriott International.

The fund has invested approximately £1 bn since its inception in 2010, mostly across value-add investment in office and residential real estate across the UK and Europe.

Brandon Hollihan, founding partner of Castleforge said: 'We are thrilled to be announcing our move into the hospitality sector with the landmark purchases of the Hilton Cardiff and the Best Western Plus Bruntsfield Hotel in Edinburgh.

'The last year has been tough on the hospitality industry, but we firmly believe that these top-tier hotels and destinations are particularly well primed for a big bounce back in the months and years to come.'

Global real estate advisor, CBRE, advised the private owner on the sale of the hotel to Castleforge.

Julia Wyss at CBRE commented: 'The hotel benefits from both its central location and its association with Hilton Worldwide. We received strong demand resulting in a competitive bidding process, further signalling investors’ continued confidence in the recovery of the UK hotel market.'