London-listed Kennedy Wilson Europe Real Estate has bought its second hotel in the space of a few months with the acquisition of the Fairmont Hotel in St Andrews, Scotland, for £32.4 mln (€40.3 mln).
London-listed Kennedy Wilson Europe Real Estate has bought its second hotel in the space of a few months with the acquisition of the Fairmont Hotel in St Andrews, Scotland, for £32.4 mln (€40.3 mln).
The purchase price represents a price per key of around £155,000 (€193,000). The share acquisition is expected to complete later this month and will be funded from the company’s cash resources. The vendor is SABD Holding, a privately held UK hotel-motel operator.
The property is operated by Fairmont Hotels and Resorts under a management agreement running until 2031. It is set within 210 hectares of land in St Andrews Bay and comprises 209 rooms, two four-bed manor houses, two 18-hole golf courses, a fitness centre and spa.
The property is Kennedy Wilson Europe’s second hotel purchase following the acquisition in June of the Portmarnock Hotel in Dublin for €30 mln.
Commenting on the acquisitions, Mary Ricks, CEO of Kennedy Wilson Europe, said: ‘This is an excellent addition to our portfolio - a high quality and well managed hotel which represents our second hotel transaction within two months. Furthermore this asset provides a number of good opportunities to leverage our extensive asset management expertise through which we expect to be able to add significant value over the medium term.’
Kennedy Wilson Europe Real Estate is a closed-end investment fund that invests primarily in real estate and real estate loans in Europe, initially in the UK, Ireland and Spain, and other European countries on an opportunistic basis. The fund forms part of Kennedy Wilson, a global real estate investment company headquartered in Beverly Hills, California.
