RBS is preparing to shed one of its last major legacy hotel exposures to take advantage of rising investor demand in the sector.
The bank’s restructuring unit, West Register, and joint venture partner Patron Capital are lining up CBRE to dispose of Jupiter Hotels.
The business comprises 32 owned, leased and managed hotels.
Agents predict the portfolio – which is expected to be formally brought to market early next year – could attract bids in the region of £160m.
RBS and Patron established Jupiter Hotels in 2011 when they acquired 26 Jarvis Hotels for £111m.
RBS was among several UK banks that lent to Jarvis but was the only institution willing to inject equity to save some of its assets.
It financed the acquisition of around half the Jarvis portfolio as well as proving equity alongside Patron Capital Fund III.
The joint venture struck a deal with Accor to operate the regional mid-market portfolio under its Mercure brand.
It has since added to the portfolio with a deal in March, rescuing five Choice Hotels in East Anglia from administration.
RBS and Patron established the business with a strategy to sell within five years.
However, a string of hotel portfolio deals that have attracted bids significantly over asking prices has encouraged them to seek a slightly earlier exit.
A portfolio of InterContinental Hotels sold by GIC Real Estate, Lehman Brothers and Realstar in September sold for £30m over the £70m asking price after attracting more than 60 offers.
A source said: “Investors are looking for deals which offer the chance to acquire immediate scale, so this is likely to attract substantial interest.”
