The remaining Hilton hotels in Vincent Tchenguiz’s Project Zinc portfolio have been sold out of administration for £246m.
Nine regional Hilton hotels were acquired by several special purpose vehicles controlled by Vivion Investments Sarl.
The trophy asset in the portfolio, the 601-bedroom Hilton London Kensington, was last year sold separately for £261.5m to Kensington Cola, as reported by EG.
Combined, the portfolio sold for £507.5m.
The properties are operated by Hilton but were previously owned by the tycoon’s Zinc Hotels group. The holding companies for the assets were put into administration by their lenders last year.
The secured creditors owed were Fortress Investment Group, Hayfin Capital Management and Bayerische Landesbank.
The nine remaining hotels were:
- Hilton Hotel, Croydon
- Hilton Hotel, Watford
- Hilton Hotel, East Midlands Airport
- Hilton Hotel and Woodcourt Lodge, Cobham, Surrey
- Hilton Hotel, Nottingham
- Hilton Hotel, Leeds City
- Hilton Hotel, Northampton
- Hilton Puckrup Hall, Twyning, Tewkesbury
- Hilton Hotel, York
All the hotels are operated under occupational lease agreements with a subsidiary of Hilton Worldwide, with an initial unexpired term of around 11 years.
Rob Stapleton, a director in Savills’ hotel team, which advised on the sale on behalf of the administrators, AlixPartners, said: “The disposal of the Zinc portfolio is indicative of the unabated appetite for UK hotels, particularly those with attractive lease terms and long-term value enhancement opportunities.
“The offering included a bond-like income structure, while the scale of the portfolio attracted significant interest from a broad spectrum of global capital sources.”
JLL jointly advised on the deal alongside Savills.
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