Starwood Capital Group has announced the sale of 14 hotel properties in the UK to Foncière des Régions. Terms of the deal have not been made public, although the transaction is expected to close in June at nearly $1.1 billion.
Totaling 2,638 keys, the 14 properties included in the deal span Starwood’s Principal and De Vere brands in major markets such as London, Edinburgh, and Leeds. The Principal London and the Principal Manchester are among the most notable properties featured in the sale.
“This landmark transaction represents a major milestone in our remarkable journey with the Principal Hotel Company,” says Starwood Capital Group’s managing director and head of European Hotels Cody Bradshaw. “Five years ago, we embarked on an investment strategy aimed at consolidating more than 50 hotels across four different UK 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. As longterm institutional investors, Foncière des Régions are extraordinary custodians of real estate and we could not be more thrilled to pass them this iconic collection of assets.”
