Landsec, the UK's largest commercial property development and investment company, has disposed of its entire hotel portfolio, comprising 21 Novotel and Ibis hotels, in a deal with global investment manager Ares Management and pan-European hotel investor and operator EQ Group. The purchase price was GBP400 million (GBP132,000 per room), of which GBP50 million is deferred for up to two years subject to an interest rate of 6%. The 21 hotels were all subject to long-term leases to AccorInvest that were not due to expire until 2091, with 12-yearly, tenant-only break clauses. AccorInvest agreed to surrender the leases to the purchasers, which resulted in Ares and EQ ultimately acquiring 18 hotels comprising 3,028 keys. London is home to the majority of the portfolio's value, with the rest being held in cities such as Edinburgh, Birmingham and Manchester. With a GBP404 million book value in September 2023 and GBP28.4 million of net income during the latest reported financial year, this disposal will see Landsec reduce its LTV by over three points, down from 34.4% in September 2023, and release strategic capital to focus on areas it deems it has a competitive advantage in.
International investment firm KKR, through its REPE II fund and in partnership with London-based Amante Capital, has acquired the four-star, 132-room Park Grand London Kensington in London, UK, from Bartek Holdings. The hotel includes a restaurant, bar, meeting space and a fitness room. Located in the Kensington borough, to the south-west of Hyde Park, the hotel is set to be fully refurbished and resume trading under Marriott's Tribute Portfolio brand. Amante is expected to take over the management of the asset. The REPE II fund, which closed in Q2 2021 at $2.2 billion, targets opportunistic and value-add investments in the western European real estate market. Amante was founded in 2022 and its scope includes hotel acquisitions, asset management and operations.
Spanish private equity firm Meridia Capital, led by CEO Javier Faus and through its Meridia V fund, has acquired the former three-star, 270-room, Hotel Presidente in Portinatx on the Balearic Island of Ibiza, Spain, from New-York-based alternative investor Oak Hill Advisors (OHA). The asset was reportedly valued at approximately EUR30 million (EUR111,000 per room). The hotel, located on the northern tip of the island around 2 kilometres from the Six Senses Ibiza, is roughly 40 minutes by car from the island's airport. Having acquired the property in 2018, OHA had secured approval to reposition the asset into a five-star hotel through a EUR20 million (EUR74,000 per room) refurbishment programme, however, this plan was never carried out. Meridia is now expected to execute this vision and lead the redevelopment, which will see the hotel reduce its number of rooms to 225 and target leading BREEAM and LEED sustainability certifications.
A JV between German developer Geiger Unternehmensgruppe and German micro-living specialist i Live group has sold the four-star, 157-room Rioca Stuttgart Posto 6 aparthotel in Stuttgart, Germany, to an undisclosed family office. The hotel is located in the southern suburb of Moehringen, some 15 minutes by car from Stuttgart airport. The newly-built aparthotel sits on a 4,500 sqm plot and was finalised in Q1 2024 after a near two-year development period. Key features include an underground 30-spot car park, a 200 sqm rooftop terrace and an in-house bar. The room sizes range from 24 sqm to 32 sqm. Rioca is the business and leisure aparthotel brand of the i Live group, which also includes residential apartments. The brand currently has six properties across Germany and Austria, with three new properties in the pipeline, two of which are set to open in Q3 2024.
Uno acquires two country hotels in South-East England
British owner-operator Uno Hotels, led by Vijay Singh Bhandari, has acquired the three-star, 52-room The Hickstead hotel in Bolney, and the four-star, 40-room Grovefield House Hotel in Burnham, both of which are located in the south-east of England. Bolney is situated near Hayward's Heath around 70 kms south of central London, while Burnham is around an hour's drive west of central London. Both hotels include a bar, restaurant and meeting space. Prior to this acquisition, Uno Hotel's portfolio consisted of three properties, all in the south-east of England, including the Uno Hotel Heathrow Windsor, the Best Western Ealing Northfields Hotel in London, and the Rose and Crown Hotel in Tonbridge, Kent.
Real Estate & Investment
ARES MANAGEMENT CORPORATION 
