Real estate investment firm Queensgate has snapped up four Grange hotels in central London in a deal worth roughly £1bn.
The company has acquired the Grange’s upmarket hotels at St Paul’s, Tower Bridge, the City and Holborn. In total the portfolio comprises 1,345 rooms and roughly 930,000 square feet (sq ft) of real estate.
The hotels will be run by Israeli hotel group Fattal, which plans to to carry out refurbishments across all four sites. The deal means Fattal now operates seven hotels and 2,000 rooms in the capital.
Jason Kow, chief executive of Queensgate Investments, said: “Queensgate is proud to have completed this milestone acquisition which represents circa 1m sq ft of high-quality central London hotels and delivers superior cash on cash returns for our investors.”
Queensgate secured a fully underwritten debt facility from Societe Generale, the Carlyle Group and Cheyne Capital for the transaction, while Brown Rudnick and EY acted as advisers.
A spokesman for Grange Hotels said: “We are delighted with the outcome of the transaction. We acquired, developed and constructed the portfolio over a period of 20 years.
“The four hotels give the purchaser immediate scale in excellent locations, in one of the most highly sought-after and dynamic markets in the world.”