Increasing appetite for retirement homes and residential conversions has prompted Starwood Capital to fillet its hotel businesses with a £180m sale.
The US private equity giant has appointed Christie + Co to market Project Milan, a portfolio of 19 assets from the three hotel businesses it has acquired in the past two years.
Milan is comprised of 18 freeholds and one leasehold totalling 2,000 bedrooms and 166,000 sq ft of conference space.
Marketing literature for the sale promotes the “potential across the portfolio for alternative-use development”.
The portfolio comprises 11 De Vere hotels, seven Principal Hayley Hotels and one Four Pillars hotel – the Oxford Witney.
The combined portfolio commanded revenues of £68m in 2014, reflecting a 4.5% increase on 2013.
Starwood bought the 23 hotels owned by Principal Hayley in 2013 and completed the purchase of De Vere’s 23 hotels and conference venues the following year for £231m.
It bought Four Pillars – a portfolio of five owned and leased hotels and one managed hotel – for around £90m in January 2014.
Following the sale of Project Milan, Starwood will retain ownership of 16 Principal Hayley and 12 De Vere hotels.
