Europe Hotel Transactions Bulletin – Week Ending 6 April 2018 (April 6, 2018)

Park Inn Krakow sold to Union Investment for €26 million

The German institutional real estate fund Union Investment, has announced the acquisition of its second hotel in Krakow, the 152-room Park Inn by Radisson. The property, located south of the Vistula river and in immediate vicinity of the ICE Congress Centre, was acquired for €26 million from a joint venture between UBM Development and Lindorcenia Ltd. Currently operated under a long-term lease agreement, management of the hotel will remain unchanged.

Foncière des Murs in exclusivity to buy Principal Hotels from Starwood Capital for £750 million

Foncière des Murs, (FdM) the hotel owning subsidiary of French real estate fund Foncière des Régions, has confirmed that it is in exclusive talks to acquire the 12-hotel Principal Hotels portfolio from Starwood Capital. The portfolio comprising of over 2,600 rooms is reported to be under offer for approximately £750 million, with the future operator being IHG. Two additional properties from Starwood’s DeVere Portfolio have also been incorporated into the sale. Starwood Capital acquired the group in 2013 as part of its Principal Hayley acquisition, and currently boasts seven properties in England, four in Scotland and one in Wales.

HNA plans to sell stake in Hilton Worldwide

HNA Group, the largest shareholder of Hilton Worldwide and owner of landmark hotels such as the Waldorf Astoria New York, has announced that it will be selling some or all of its 26.1% ($6.5 billion) stake in the US hotel operator. The announcement comes after months of speculation, and the announcement of HNA’s sale of its stake in both Hilton Grand Vacations as well as Park Hotels & Resorts earlier this year. HNA Group has been divesting its overseas investments, as about $20 billion of its US dollar denominated debt is due to mature in 2018 and 2019.
When HNA purchased its stake in Hilton from Blackstone, it agreed to a two-year suspension on share sales unless Hilton’s board approved the transaction. As these lock-up provisions are still in place, analysts suspect that Hilton could use those provisions to either repurchase its shares directly or ensure that the sale is conducted in a way that gives no one group such a large stake in the company.

AccorHotels acquires 50% stake in South African Mantis Group

AccorHotels has announced a strategic partnership with the Mantis Group, a South Africa-based hospitality and travel conglomerate. The deal reported this week will see AccorHotels acquiring a 50% interest in the Mantis Group, which currently manages 28 properties across Africa, including hotels, eco lodges, game reserves and luxury houseboats. In addition to its hotel operating activities, Mantis also has a tour operating division, offering one-of-a-kind bespoke travel services.

Pandox agrees sale of Scandic Kiruna to LKAB for €28 million

Swedish state-owned mining company, LKAB, has agreed to buy the 171-room Scandic Ferrum from Pandox in the country’s northernmost city, Kiruna. The hotel is currently leased to Scandic Hotels, but due to expanding iron-ore mining in the city it will be closing not long after the transaction closes in December 2018. Pandox has reported that it sold the property at a yield of 5.7%.

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Disclaimer: Information provided above has been gathered from various market sources. HVS has not independently verified the accuracy of the information provided. Interested parties should not rely on the information as statement of facts and are advised to make their own independent checks to verify the information provided. For further information, please feel free to contact HVS London.

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