Starwood Capital Group has agreed to sell a portfolio of 14 U.K. hotels that form part of The Principal Hotel Company to Foncière des Régions (through its subsidiary dedicated to hotel real estate, Foncière des Murs). Terms of the transaction, which is expected to be completed in June 2018, were not disclosed.
The portfolio consists of 14 full-service hotels comprised of 2,638 keys and split across two distinct landmark brands, Principal (12 hotels) and De Vere (two hotels). The properties occupy flagship locations in high-growth cities across the United Kingdom, including London, Manchester, Edinburgh, Glasgow, Oxford, York and Leeds. Included in the portfolio are The Principal London and The Principal Manchester, two of the most iconic and historic hotels in the United Kingdom.
“This landmark transaction represents a major milestone in our remarkable journey with The Principal Hotel Company,” said Cody Bradshaw, managing director and head of European hotels for Starwood Capital Group. “Five years ago, we embarked on an investment strategy aimed at consolidating more than 50 hotels across four different U.K. hotel companies to form a leading platform. With this sale to Foncière des Régions, we will have realized 35 asset disposals in total since our acquisition. As long-term institutional investors, Foncière des Régions are extraordinary custodians of real estate and we could not be more thrilled to pass them this iconic collection of assets.”
