New hotel deals in Britain attract international investors

It's been a busy week for UK hotel deals, as HVS notes. Here are some recent transactions, including two from US-based private equity firm KSL Capital Partners, owner of the Malmaison and Hotel du Vin chains.

KSL won the bidding war for De Vere’s portfolio of Village Urban Resort hotels across the UK this past week. HVS says that KSL will pay more than £480 million (£154,800 per room) for the 25-property portfolio, which includes 3,100 rooms. The hotels were put on the market in July this year and KSL beat around 20 rival bidders for the chain.

KSL’s Hotel du Vin group has also purchased the Cannizaro House Hotel in Wimbledon, Greater London, for an undisclosed sum. The deal brings the group’s portfolio of hotels across the UK to 16, and the 46-room Cannizaro House is its first property in the London area. The four-star hotel, which dates from the early 19th century, will now undergo a £1 million renovation.

Meanwhile, Qatar increased its British shareholdings by adding a significant stake in the Savoy Hotel to its portfolio. According to the Times, Lloyds Banking Group sold its 50 percent stake in the London landmark for an undisclosed price to a joint venture led by Katara Hospitality, controlled by the Qatari government.

The deal, which follows a refinancing of its debt by a syndicate led by Deutsche Bank, completes the bank's exit from an investment inherited from Bank of Scotland in the takeover of the troubled bank in 2008.

And finally, Amsterdam-based budget hotel brand The Student Hotel secured a €150 million capital increase and equity commitment from Parella Weinberg Real Estate that will help the group expand throughout Europe, targeting UK cities such as London, Brighton and Edinburgh.