UK - Deutsche Bank real estate subsidiary RREEF has bucked a trend towards international prime hotel acquisition by acquiring the Four Pillars Hotel Group, which has five mid-sector assets in Oxfordshire and Gloucestershire.

RREEF CEO Alistair Dixon said the UK regional market was "stable and not as volatile as the city centre because the weighting is towards domestic rather than international business".

This regional acquisition, which marks the group's entry into the UK , includes the acquired firm's management expertise. As part of the deal, a joint venture will identify and build further sites under the Four Pillars brand.

"The corporate and conference hotels business is on the up. We expect an increase in the next 5-10 years," said Dixon.

"Add into the mix the fact that it isn't easy to build because of planning constraints. You can grow quicker from acquiring than you can from developing new projects, though we're also planning to add sites. We'll remain flexible," he added.

Recent investment in hotels has largely focused on global brands in capitals and second cities, although Dutch fund ABP recently told IPE it had not ruled out entering the budget end of the hotel market after acquiring two Marriott hotels in Brussels.

In a separate development, RREEF also announced last week it had taken possession of the Aphrodite Hills resort in Cyprus via its acquisition of parent company Lanitis Development. The resort includes a five-star InterContinental hotel.


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