Apollo Global Management has agreed to sell the remaining assets from its Ribbon Portfolio to Vivion Capital Partners for £750m.
The portfolio of 22 Holiday Inn hotels was acquired by Apollo in 2015 for £1bn from a consortium including Lehman Brothers, GIC and Realstar.
Apollo immediately sold off the portfolio’s flagship asset, the 906-bedroom Holiday Inn Kensington Forum, SW7, to Jason Kow’s Queensgate. It also sold a leasehold interest in a property in Mayfair at the same time for a combined total of £400m.
Apollo is understood to have made nearly two times its original investment from the proceeds of the earlier sale and from the cashflow during its ownership of the portfolio.
Queensgate Investments, in partnership with Rockwell, has since been exploring the redevelopment of the 29-storey hotel.
Last year the partners went out to public consultation with designs from SimpsonHaugh to replace the brutalist Richard Seifert-designed hotel with a stepped scheme rising to 28 storeys that included a 756-room hotel, 178 new homes – of which four would be town houses – restaurants and a garden square.
Apollo declined to comment.
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