Starwood Capital Group announced on Wednesday that an investment fund affiliate bought the U.K.-based Principal Hayley Group for an undisclosed sum.
The transaction includes 22 landmark city center hotels with dedicated conference and training venues in the U.K. and one in France. The portfolio includes well known hotels such as the 249-room The George, Edinburgh; the 142-room St. David’s Hotel, Cardiff; the 186-room Grand Central Hotel, Glasgow; and the 373-room Hotel Russell, London.
The Sunday Times reported that the deal is estimated to have been about £400 million (US$523 million). Starwood Capital Group was one of four potential buyers shortlisted for the portfolio, another was Morgan Stanley Real Estate Funds. Principal Hayley Group was 30% controlled by Lloyds Banking Group with the rest held by management.
“We intend to use our capital and branding expertise to maximize the value of each property in the portfolio,” said Jeff Dishner , senior managing director of Starwood Capital Group, Greenwich, Connecticut. “We look forward to working with the Principal Hayley management team to grow the enterprise.”
Starwood Capital did not reveal whether rebranding is planned for the hotels or not.
“This transaction marks an exciting investment in the European hotels and conference sector and provides a great management platform for us to expand further in Europe,”said Starwood Capital Chairman and CEO Barry Sternlicht.