The Abu Dhabi Investment Authority has completed its purchase of 42 Marriott hotels for £640m.
The sovereign wealth fund bought the portfolio from administrators at Ernst & Young.
An Indian hotel firm with backing from Qatari investors, Blue Coast, had previously been in exclusive talks to buy the portfolio for around £720m. However, a sale was never agreed.
The package of hotels was previously owned by a joint venture between investor Igal Ahouvi, Israeli investment company Delek Global Real Estate and Avestus Capital Partners, the investment company that was formerly Quinlan Private.
The 42 hotels were bought in 2007 for £1.1bn from Royal Bank of Scotland, which had previously bought the portfolio from Whitbread and Marriott for £965m in 2006. The bank lent £850m against the portfolio, and a tranche of it was later bought by Lehman Brothers.
The portfolio collapsed into administration in June 2011.
Jones Lang LaSalle and Hawkpoint were appointed to sell the portfolio.
All parties declined to comment.
annabel.dixon@estatesgazette.com
