A summary of European hotel transactions provided by HVS
LondonMetric acquires LXi REIT including its 144 UK hotels
British REIT LondonMetric Property Plc has finalised its acquisition of the London-based LXi REIT for £1.9 billion. The latter held a multi-sectoral real estate portfolio across the UK which included 144 hotels, with 135 Travelodges, seven Premier Inns, the Jurys Inn in Plymouth and the Cambridge Belfry Hotel. With this acquisition, the combined portfolio will reach approximately £6.2 billion across all sectors, making LondonMetric the fourth largest UK REIT by market capitalisation. Of the 135 Travelodges, 123 (6,557 rooms) were acquired in one transaction in July 2022, at which time they had a weighted average, unexpired lease term of 20.1 years. This transaction comes after LXi had sold a 66-hotel strong Travelodge portfolio to its tenant Travelodge earlier this year, as referenced in our European Hotel Transaction Bulletin from 16 January 2024.
Hilton to acquire Graduate Hotels brand from AJ Capital Partners
International hotel group Hilton Hotels & Resorts has signed an agreement to acquire all rights to the Graduate Hotels brand, with 33 properties across the US and UK, for $210 million, from Nashville-based real estate investment manager Adventurous Journeys (AJ) Capital Partners. Following the acquisition, AJ Capital Partners will remain owners of the existing assets plus two pipeline hotels, which they will also continue to operate under long term franchise agreements with the Hilton group. Hilton will be responsible for the brand’s future development and growth. The acquisition is expected to bring Hilton $16 million in franchise fee income during the first full ownership year. There are currently two Graduate Hotels in the UK, in the university cities of Oxford and Cambridge.
NUMA and NWH acquire Bedford Corner Hotel in London
Berlin-based hotel company NUMA Group and British operator New World Hospitality Group have acquired the four-star, 86-room Bedford Corner Hotel in London, UK, from an undisclosed seller. The hotel is located in the central Bloomsbury area, in proximity to the British Museum, Oxford Street and the University of London. Following refurbishments, including upgrades to incorporate NUMA’s digital technologies that enable guests to use their smartphones to check in and out, access their rooms and communicate with customer service staff, the hotel will trade under the NUMA Bloom name. The acquisition marks Numa’s first venture into the UK and its portfolio now comprises 5,850 rooms across 33 cities in 15 countries. The group will aim to continue its expansion into the UK in major cities such as Manchester and Edinburgh.
Grupo Fuertes and Satocan acquire Hotel Tenerife Golf & Sea View in Spain
Spanish holding company Grupo Fuertes and Canary Island real estate developer and operator Satocan have acquired the four-star, 125-room Hotel Tenerife Golf & Sea View on Tenerife, the largest of Spain’s Canary Islands, from an undisclosed seller. The hotel is located ten minutes’ drive from Tenerife South Airport and within walking distance of the Amarilla Golf course. The asset, which is now being operated by Satocan, will undergo an extensive renovation during the course of 2025. Grupo Fuertes previously acquired the 1,200-room Marina d’Or Resort in Oropesa del Mar, Spain, in November 2023. Satocan’s operating portfolio presently comprises six hotels distributed across Spain.
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