May 17, 2020

Starwood Capital Group snaps up Hilton UK portfolio

Hilton
Hilton Worldwide
hotel
Hospitality
Laura Mullan
2 min
Hilton hotels have announced that Starwood Capital Group has acquired seven of its UK hotels for £135mn.
Hilton hotels have announced that Starwood Capital Group has acquired seven of its UK hotels for £135mn.

Starwood Global Opportunity Fund XI, an affil...

Hilton hotels have announced that Starwood Capital Group has acquired seven of its UK hotels for £135mn.

Starwood Global Opportunity Fund XI, an affiliate of the private investment firm, acquired seven Hilton hotels.

The deal includes the 188-room Hilton London Islington, the 173-room Hilton Bath City, the 184-room Hilton Edinburgh Grosvenor, the 198-room Hilton Belfast, the 278-room Hilton Blackpool, the 138-room Hilton Milton Keynes and the 175-room Hilton Coylumbridge.

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Starwood Capital Group said that it plans to refurbish the assets and that the portfolio will be managed by Kew Green Hotels under a franchise agreement with Hilton.

This marks the second acquisition where Starwood Capital Group and Kew Green have partnered in the last year, following the successful acquisition of the Holiday Inn in Manchester, UK, last April.

“We are acquiring this well-located portfolio at a substantial discount to replacement cost and with significant upside potential still to be realised,” said Jon Asumendi, vice president at Starwood Capital Group.

Jamie Lamb, executive chairman of Kew Green Group, added: “We are very pleased to be partnering with Starwood Capital Group for a second time to unlock opportunities in the portfolio.”

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May 17, 2020

Minor International edges closer to NH Hotel Group takeover with €619mn deal for HNA Group stake

NH Hotel Group
Mergers and acquisitions
Hotels
Ben Mouncer
2 min
Hotel frontage
Minor International in lining up the full acquisition of NH Hotel Group after purchasing an additional 25.2% stake in the Spanish company for €619mn...

Minor International in lining up the full acquisition of NH Hotel Group after purchasing an additional 25.2% stake in the Spanish company for €619mn.

Thailand-based Minor revealed its plans on Wednesday having completed a deal for the extra shareholding previously held by Chinese conglomerate HNA Group, taking its current total stake in NH Hotel Group to approximately 38%.

By moving beyond a 30% stake in the company, Minor is now eligible under Spanish law to launch a takeover bid – something it plans to do within the next few months.

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NH rejected a similar approach from rival Grupo Barcelo earlier this year however and any completion is subject to the approvals of Minor’s shareholders, the National Securities Market Commission of Spain (CNMV) and clearance by relevant anti-trust authorities.

The share purchase from HNA Group will be in two tranches of 65.85mn shares to be completed on or around 15 June and 32.94mn shares, expected to be completed in September. HNA is selling as part of a wider divestment of assets through which it hopes to complete debt repayments.

“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry,” said Dillip Rajakarier, CEO Minor Hotels.

“We will be able to create a network of over 540 hotels with a reach across Asia, Oceania, the Middle East, Africa and Europe, all of which are important hospitality regions around the world. The business network will allow the two companies to capitalise on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees.”

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