Cowell Group checks into Luton's Hilton Garden Inn

London-based investor-developer Cowell Group has acquired its fifth Hilton hotel property in the UK.

Acting on behalf of an overseas investor, Cowell Group purchased the Hilton Garden Inn in the English city of Luton.

The leasehold interest in the 157-room hotel was offered for sale for £8.5 mln (almost €10 mln), reflecting a net initial yield of 10.1%. Estate Office Property Consultants represented Cowell Group in the acquisition.

Cowell's real estate portfolio includes the Hilton Queensway in Bayswater and a further three Hilton Hotels in the UK.

The sale of the Hilton Garden Inn in Luton was negotiated by CBRE Hotels on behalf of a client of Tritax. The hotel was sold as part of the client’s strategy to dispose of its non-core assets and concentrate on its core hotel properties.

Commenting on the sale, Owen Pritchard of CBRE Hotels said: 'The sale of the Hilton Garden Inn Luton demonstrates the increased interest in the regional hotel market, which is recovering after the recent economic downturn. We are very pleased to secure a successful transaction in what are still challenging market conditions.'

The purpose-built contemporary property opened in 2008 as the first of the Hilton Garden Inn branded hotels in the UK. Facilities include a bar, restaurant, gym, and a fully equipped business centre with 10 meeting rooms.