Foncière des Régions has agreed to buy Starwood Capital’s Principal Hayley hotel business for £858m, marking its UK debut.
As revealed by EG, the French SIIC is buying 14 four- and five-star hotels, totalling 2,638 rooms. Two hotels have also been transferred from Starwood’s DeVere business.
IHG has agreed long-term leases on 13 of the properties.
The hotels are located in Birmingham, Leeds, Liverpool, London, Manchester, Oxford, Wotton, York, Edinburgh, Glasgow and Cardiff.
The company said the deal “marks a major step in Foncière des Régions’ hotel business development strategy, strengthening its move towards more upmarket real estate and the geographical diversification of its portfolio in this sector.”
It is to raise a further €300m of capital for the transaction.
Deputy chief executive Dominique Ozanne, said: “Foncière des Régions is continuing its strategy to move upmarket in the hotel real estate industry. This acquisition is an opportunity to duplicate the development strategy already rolled out in France, Germany and Spain, where Foncière des Régions is the preferred partner of active operators on these markets. This transaction will help Foncière des Régions cement its leading position on the hotel real estate investment market in Europe.”
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