Regional investment service acquires four major hotels for £1bn
Queensgate Investments has completed the acquisition of four major sites for around £1bn.
These include: The Grange St Paul’s EC4; Grange Tower Bridge E1; Grange City EC3; and Grange Holborn WC1.
The portfolio comprises 1,345 Central London rooms, around 930,000 sq ft of real estate. The four upscale hotels have meeting and conference space as well as spa and leisure facilities including swimming pools. The portfolio was sold by Grange Hotels, one of London’s largest privately-held hotel groups which, following the transaction, will own and operate 13 hotels, primarily in Central London.
Jason Kow, chief executive of Queensgate Investments, said: “Queensgate is proud to have completed this milestone acquisition which represents circa one million sq ft of Central London hotels and delivers superior cash on cash returns for our investors.” Queensgate secured a fully underwritten debt facility from Société Générale, The Carlyle Group and Cheyne Capital for the transaction.
David Fattal, chief executive of Fattal Hotel Group, added: “The Fattal Hotel Group is very happy to become active in central London, with the operation of four significant and highly regarded hotels.
“The four hotels will undergo an extensive renovation plan and will be flagged by our Leonardo Royal and NYX brands. We thank Queensgate for their trust and partnership.”
A spokesman for Grange Hotels: “We are delighted with the outcome of the transaction.
“We acquired, developed and constructed the portfolio over a period of 20 years. The four hotels give the purchaser immediate scale in excellent locations, in one of the most highly sought-after and dynamic markets in the world.”
Brown Rudnick and EY advised Queensgate. HFF Securities acted as exclusive financial adviser to Grange.
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