London – Henderson Park, the European real estate investment platform, has exchanged contracts on the acquisition of a portfolio of 12 predominantly freehold Hilton branded hotels across the UK and Ireland, strategically located in key cities including London, Edinburgh, Glasgow and Dublin. The transaction is expected to close later this year.
The 2,424 key portfolio is a collection of well-positioned, full-service Hilton branded hotels with a wide range of amenities, including business centres, state-of-the-art meeting facilities, and full-service leisure clubs with indoor swimming pools and spas, which appeal to an extensive outside clientele base.
The hotels are in excellent condition with opportunities for additional value creation across the portfolio through extensions, room renovations, redevelopment of ground floor space to attract external footfall, and alternative use exploration.
All 12 hotels are franchised by Hilton, one of the largest hotel operators in the world, and encompass three of the company’s most recognised brands: Hilton Hotels & Resorts; Hilton Garden Inn; and DoubleTree by Hilton. Henderson Park is in advanced discussions with the existing manager, Amaris Hospitality, for the ongoing management of the hotels.
The hotels are strategically situated across the UK: the majority are located in large or capital cities including London, Edinburgh, Glasgow and Dublin, with the others in important nearby cities such as Bristol, Coventry, Dartford, Newbury and Southampton. All the hotels benefit from strong transport links and connectivity into key industrial, business and tourist districts, and are seen as well positioned to capture the recovery in hospitality, which is anticipated to be driven initially by domestic business and leisure demand.
Henderson Park brings significant hospitality asset management expertise to this latest acquisition, the senior team having successfully repositioned numerous other hotels in projects around the world, both recently and in the wake of the financial crisis. Funds managed by the firm control other assets operated by Hilton, including two of the largest hotels in the UK in London and Birmingham.
Nick Weber, Founding Partner of Henderson Park, said: “This transaction presents us with a rare opportunity to acquire a large, high-quality portfolio of assets, timed to capitalise on the potential for a near term return to travel as well as a wider post-pandemic recovery over the years to come. Hospitality remains a high conviction asset class for Henderson Park, and one where we have an experienced team who are excited to manage this landmark portfolio.”
Christophe Kuhbier, Managing Director at Henderson Park, added: “We believe these assets can deliver reliable cash flow, being located in key business and tourism hubs, and see an opportunity to drive growth through hands on management. We’ve worked closely with Hilton before and look forward to continuing our partnership and replicating our successes again.”
Finance for the transaction was provided by Apollo. Henderson Park was advised on financing by Eastdil.
About Henderson Park
Henderson Park is a pan-European private equity property manager based in London. The firm has invested approximately $11 billion in building a portfolio of flagship real estate assets across Europe, with a presence in major cities and capitals in France, Germany, Greece, Ireland, Poland, Portugal, Spain and the UK. Henderson Park seeks high quality assets in prime locations where it can identify the potential for unlocking or creating value through asset management, or by taking on and working in complex situations. The company”s current portfolio is diversified across various sectors such as office, logistics, multifamily, student housing, hospitality and retail, including several real estate development projects. Henderson Park strives to work and build long-term strategic relationships with the best local partners. Henderson Park is led by Nick Weber, its CEO and founding partner.
Henderson Park is a signatory of the UN PRI.
Visit www.hendersonpark.com for more information.