'Top-tier' Cardiff hotel acquired as London investment firm expands hospitality portfolio
A London property investment firm has announced its hospitality expansion into Cardiff with the purchase of a new hotel.
Castleforge, which primarily invests in offices and residential real estate, acquired the 197-bedroom Hilton Cardiff from a private owner of fourteen years.
The seven-floor hotel, which has views over Cardiff Castle and the city’s Edwardian civic center, is the company’s second hotel purchase.
This follows Castleforge’s first investment in the hospitality sector in May, when it acquired the Best Western Plus Bruntsfield Hotel in Edinburgh.
Matt Lederer, hotel acquisitions director at Castleforge Partners, said: “Our hotel strategy at Castleforge is to invest only in best in class value add opportunities across the UK and European markets.
“Our decision to invest in the city of Cardiff and the Hilton Hotel is emblematic of this approach.”
Castleforge has invested approximately £1bn since its inception in 2010, gaining a strong reputation for value-add investment in office and residential real estate across the UK and Europe.
Brandon Hollihan, founding partner of Castleforge Partners said: “The last year has been tough on the hospitality industry, but we firmly believe that these top-tier hotels and destinations are particularly well primed for a big bounce back in the months and years to come.”
Global real estate advisor, CBRE, advised the private owner on the sale of the hotel to Castleforge.
Julia Wyss at CBRE added: “The hotel benefits from both its central location and its association with Hilton Worldwide. We received strong demand resulting in a competitive bidding process, further signaling investors’ continued confidence in the recovery of the UK hotel market.”
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