U.S. investor sells U.K. hotel portfolio for £583m
London & Regional has completed its purchase of 47 hotels across the United Kingdom, known as the Atlas portfolio, from U.S.-based Lone Star Funds. The sales price was £583.6 million ($777 million).
The Atlas portfolio includes 46 Holiday Inn Express hotels and one Hampton by Hilton. The acquisition is London & Regional's first foray into the budget hotel sector. The franchise agreement with InterContinental Hotels Group to operate the sites under the Holiday Inn express brand has been extended by 15 years.
Atlas Hotels, which was created following the merger of Somerston Hotels and Morethan Hotels, was acquired by Lone Star in February 2015.
London & Regional has a portfolio of 15 properties, 10 of which are U.K. hotels, including Chewton Glen in Hampshire, Cliveden House in Berkshire and the recently acquired Lygon Arms in Worcestershire. The group also owns the Hilton on Park Lane and Marriott Marble Arch in London.