Hilton Worldwide Holdings is selling off the UK assets from its real estate REIT, Park Hotels and Resorts, for around £150m.
The investment opportunity, which is known in the market as project Dragon Glass, comprises eight hotels in the UK and Northern Ireland.
The trophy asset on offer is the 188-bedroom Hilton London Angel Islington, N1 [main picture]. The other Hiltons on offer in the portfolio are the Hilton hotels in Blackpool, Belfast, Edinburgh, Coylumbridge, Bath, Milton Keynes and Sheffield.
The hotels are being offered on a long-leasehold basis. The properties are being offered free of management giving a new owner the opportunity to refurbish and rebrand them.
CBRE has been instructed to market the opportunity. The sale of the properties will be opportunity led and some assets may be acquired on an individual basis.
Park Hotels and Resorts REIT was formed as a separate real estate company in January 2017 and it has 69 hotels in its portfolio. Around 90% of the assets are in the United States.
At the time of the spin-off, Park Hotels and Resorts REIT was the second largest publically traded real estate investment trust on the New York stock exchange. In total its portfolio is worth around $9bn.
The spin-off was part of a property strategy which Hilton Worldwide announced in June 2016 that it would separate its business into three distinct publically traded companies.
The three companies were its real estate ownership arm – Park Hotels and Resorts, a timeshare business called Hilton Grand Vacations and its core fee bases franchise and management business, which retained the Hilton Worldwide Holdings name.
Park Hotels REIT is headquartered in McLean, Virginia and is led by president and chief executive Thomas J. Baltimore.
At the time of the spin-off at the beginning of last year, Hilton Worldwide announced that the strategy for Park Hotels and Resorts was to focus on premium assets, of which more than 85% would be luxury or upper-scale sub-sector of the hotel market.
The decision to sell these UK properties forms part of this business strategy to focus on premium and luxury assets moving forwards.
There are two other European assets in the Park Hotels REIT in Germany – the Hilton Nuremberg and the Hilton Berlin. These properties are also being offered to investors.
CBRE declined to comment.
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