Funds managed by Ares Real Estate have acquired a hotel portfolio from Landsec alongside hotel operating partner EQ Group.
Prior to the acquisition, the properties were fully let to AccorInvest under long-term leases. In parallel with the closing of the acquisition, Ares entered into an agreement with AccorInvest to surrender these leases and transfer operations of the relevant hotels to Ares. As a result of these transactions, Ares has acquired 18 hotels with 3,028 rooms at a headline purchase price of £400 million ($500 million).
The portfolio consists of midscale and economy properties with the majority of value in Central London and the remaining assets primarily located in major U.K. city centers, including Edinburgh, Manchester and Birmingham. The acquisition, which consolidates ownership of the portfolio’s real estate and operations by the surrender of the AccorInvest leases, provides the opportunity to enhance value through implementing various asset managem
