Queensgate Investments has completed the acquisition of Grange Hotels’ four prize London hotels for around £1bn.
As previously revealed by EG, Queensgate entered exclusive talks in November to buy the Grange St Paul’s, EC4; Grange Tower Bridge, E1; Grange City, EC3; and Grange Holborn WC1.
The portfolio comprises 1,345 bedrooms, spanning 930,000 sq ft.
Following the transaction, Grange Hotels will own and operate 13 hotels, primarily located in central London.
Queensgate has an agreement with Fattal Hotel Group to run the assets. Fattal will implement rolling refurbishments of all hotels and will pursue a repositioning strategy to grow. Fattal’s London portfolio will stand at a total of seven hotels and 2,000 bedrooms.
Queensgate secured a fully underwritten debt facility from Société Générale, Carlyle Group and Cheyne Capital for the transaction.
Jason Kow, chief executive of Queensgate Investments, said: “Queensgate is proud to have completed this milestone acquisition, which represents circa 1m sq ft of high-quality central London hotels and delivers superior cash-on-cash returns for our investors.”
David Fattal, chief executive of Fattal Hotel Group, added: “The four hotels will undergo an extensive renovation plan and will be flagged by our Leonardo Royal and NYX brands.”
Brown Rudnick and EY advised Queensgate. HFF Securities acted as exclusive financial adviser to Grange.
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