French investor Foncière des Régions is set to buy a portfolio of 14 U.K. hotels that form part of The Principal Hotel Co. from Starwood Capital Group for $1.1 billion. The transaction is expected to be completed in June 2018.
The portfolio consists of full-service properties comprised of 2,638 keys and split across two brands: Principal (12 hotels) and De Vere (2 hotels). The properties occupy flagship locations in cities across the country, including London, Manchester, Edinburgh, Glasgow, Oxford, York and Leeds. Included in the portfolio are historic hotels such as The Principal London and The Principal Manchester (which won the Best Hotel Upscale category at the 2017 Gold Key Awards).
“This landmark transaction represents a major milestone in our journey with The Principal Hotel Co.,” says Cody Bradshaw, managing director and head of European Hotels for Starwood Capital Group. “Five years ago, we embarked on an investment strategy aimed at consolidating more than 50 hotels across four different U.K. hotel companies to form a leading platform. With this sale to Foncière des Régions, we will have realized 35 asset disposals in total since our acquisition.”