Starwood Capital Group has acquired a portfolio of seven Hilton-branded hotels in the UK for £135 mln (€151 mln).
The US-based investment firm acquired the hotels from Park Hotels & Resorts. The portfolio comprises a total of 1,300 rooms spread across assets in major UK hotel markets, such as London, Bath, Belfast and Edinburgh.
Starwood Capital said the hotels benefit from strong occupancy rates and are located in areas with high barriers to entry. The investment firm intends to refurbish several of the hotels to enhance their performance further.
UK hotel specialist Kew Green will manage the hotels under franchise agreements with Hilton Worldwide. This is the second time Starwood Capital and Kew Green have partnered on a deal in 12 months, following on from the acquisition of the 298-key Holiday Inn Manchester in April 2017.
'We are delighted to be partnering with Kew Green on yet another exciting transaction involving prime UK city centre assets,' said Jon Asumendi, vice president at Starwood Capital Group.
He added: 'We are acquiring this well-located portfolio at a substantial discount to replacement cost and with significant upside potential still to be realised. We look forward to investing in these properties alongside Kew Green and leveraging Starwood Capital Group's hospitality expertise to maximize portfolio performance and investment returns.'
Image: Hilton London Angel Islington
