London headquartered Henderson Park Capital has reportedly purchased a chain of Hilton hotels in a multi million pound deal.
The real estate group will add 12 hotels to its portfolio complete with 2,400 rooms which span London, Edinburgh, Dublin, Bristol and Coventry. The property is valued at £555m according to the FT and Henderson Park plans to invest an additional £40m in expanding and renovating hotels.
“We see a massive recovery coming on this and so our bet on the Hilton portfolio is on phenomenal assets,” Nick Weber, founding partner of Henderson Park, told the FT. “You have Islington and Chelsea, you have Edinburgh . . . and we feel we are buying it at a very attractive price.”
Henderson Park has invested over £11bn in properties since its launch in 2016. Most recently the company announced the acquisition of 100 Leman Street, London, a 95,000 square foot office located in Aldgate, for £60m. The group has previously picked up two of the largest Hilton hotels in the country in London and Birmingham.
The sale is a positive sign about the strength of the UK’s travel sector recovery. In August, average hotel occupancy in the UK recovered to 71 per cent on the back of pent up demand after travel restrictions led to lows of 21.9 per cent in April 2020.
In 2020, Hilton Hotels turned an annual loss of $720m with share holders left out of pocket at a loss of $2.56 per share.
Last month however, Chris Nassetta, the CEO of Hilton hotels, announced that the company had seen its highest ever revenue per available room this year as the rise in staycations encouraged people to splash out on domestic hotel breaks.