Published on : Friday, May 4, 2018
The deal between a controlled affiliate of Starwood Capital Group and Foncière des Régions hotel real estate subsidiary Foncière des Murs primarily involve hotel properties that make up a portion of The Principal Hotel Co. While Starwood Capital did not divulge financial terms of the transaction, which is expected to close in June, the purchase price was reported in a press announcement by Paris-based Foncière des Régions.
Eastdil Secured and UBS served as advisors on the transaction for Starwood Capital.
The 14 full-service hotels total 2,638 keys and are split across the Principal (12 hotels) and De Vere (two hotels) brands.
The acquired hotel properties include nine British locations in Birmingham, Liverpool, London, Manchester, Oxford, Wotton, York and Leeds.
The deal also includes four hotel properties in Scotland (Edinburgh and Glasgow) and one in Wales (Cardiff). Included in the portfolio are The Principal London and The Principal Manchester in the U.K.
Foncière des Régions also reports it has selected InterContinential Hotels Group, based in Denham, Buckinghamshire, to rebrand and operate 13 of the newly acquired hotels via long-term, triple-net lease deals.
The deal, which marks the entrance into the United Kingdom for Foncière des Régions, is described by the company as “a major step” in its business development strategy to secure more upmarket real estate and diversify its hotel real estate portfolio.
The Principal Hotel Co. includes many of the properties Starwood Capital acquired through the purchase of Principal Hayley in 2013, Four Pillars and De Vere in 2014, and the Townhouse Collection in 2015, and the later combination of the four portfolios. Starwood notes that it has recently invested significant capital into the portfolio to reinvigorate the properties and re-launch the Principal and De Vere brands. That initiative included the openings of The Principal Edinburgh Charlotte Square, The Principal York, The Principal Manchester, The Principal Edinburgh George Street and the flagship property, The Principal London, which will complete its restoration this summer, the company states.
In other Starwood Capital Group-related news, German real estate company Vonovia SE has offered approximately $1.1 billion for Swedish real estate concern Victoria Park AB, topping Starwood Capital’s previous bid of $1 billion.