Starwood Capital Group Acquires Portfolio of Seven Hilton Hotels Throughout the United Kingdom
Starwood Capital Group, a leading global private investment firm, announced today that a controlled affiliate of Starwood Global Opportunity Fund XI has acquired a portfolio of seven Hilton hotels throughout the United Kingdom, totalling over 1,300 rooms from Park Hotels & Resorts for £135 million.
The portfolio is located in several of the UK's top hotel markets, including London, Edinburgh, Bath and Belfast, which benefit from high occupancies, high barriers to entry and solid investment fundamentals.
Starwood Capital Group plan to refurbish a number of the assets in order to transform operating performance and enhance asset values, with the portfolio being managed by Kew Green under franchise agreements with Hilton Worldwide. This marks the second acquisition in 12 months where Starwood and Kew Green have partnered, following the successful 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. "We are acquiring this well-located portfolio at a substantial discount to replacement cost and with significant upside potential still to be realized. 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."
"Adding seven high quality Hilton branded assets to our Management Platform is an exciting step forwards for the Kew Green Group. We are also very pleased to be partnering with Starwood Capital Group for a second time to unlock opportunities in the portfolio, where we can create value together," said Jamie Lamb, Executive Chairman, Kew Green Group Ltd.
About Starwood Capital Group
Starwood Capital Group is a private alternative investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 11 offices in five countries around the world, and currently have approximately 3,700 employees. Starwood Capital Group has raised $44 billion of equity capital since its inception in 1991, and currently manages approximately $56 billion in assets. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 26 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.
About Kew Green Group Ltd.
Kew Green Hotels was formed in September 2001 to operate high quality limited and full service branded hotels in prime locations throughout the UK. The company now operates over 50 hotels in key cities including London, Glasgow, Leeds, Liverpool, Birmingham, Manchester and Portsmouth. Most of the hotels are operated under franchise agreements with some of the world's leading hotel brands including Holiday Inn, Crowne Plaza, Holiday Inn Express, Courtyard by Marriott, ibis Styles and Hampton by Hilton. The company operates hotels under a variety of funding models including freehold ownership, leases, joint ventures with financial institutions and management contracts. Over the years, the company has won many awards in recognition of the operational excellence it strives for. For further information please visit www.kewgreen.co.uk