Starwood Capital Group has not only expanded its inventory, but also established a partnership between AccorHotels and Orbis Hotel Group in the CEE region. Through a controlled affiliate, the group has acquired Sofitel Budapest Chain Bridge Hotel from Eastern Europe's Orbis Hotel Group for €75 million.
The 357-room hotel in the center of the city is near Chain Bridge, historical monuments and the Danube River. Once the European Union Merger Control Office approves the hotel sale, Sofitel Budapest Chain Bridge will undergo an extensive renovation.
The transaction comes just three weeks after Starwood Capital appointed UBS to advise on a possible disposition of its Principal and De Vere brands, which is reportedly valued at more than £1.2 billion.
The Principal Hotel brand has 12 city center hotels in its portfolio in Britain, including Blythswood Square and the Grand Central Hotel in Glasgow, St David's Hotel in Cardiff, the Principal Edinburgh George Street and the Principal London. Starwood's De Vere brand operates a 15-property portfolio of hotels and conference venues, including Surrey's Wotton House and the Horsley Estate, Gloucestershire's Tortworth Court and Cheshire's Cranage Estate.
Ahead of the appointment, Starwood Capital set plans to focus on repositioning its larger properties. The group raised £250 million to upgrade the two brands while it sold off 20 non-core hotels valued at approximately £200 million. Starwood Capital exchanged contracts and disposed of 17 of these properties in September.
Starwood Capital bought Principal Hayley Group, De Vere Venues and Four Pillars between 2013 and 2014 before combining the three brands to establish Principal Hotel Company.