Queensgate Investments has acquired four Grange hotels in central London in a deal valued at approximately £1bn.
The acquired properties include Grange St Paul’s, Grange Tower Bridge, Grange City and Grange Holborn.
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By GlobalDataOverall, the portfolio consists of 1,345 rooms and approximately 930,000ft2 of real estate.
These four hotels have meeting and conference space, spa and leisure facilities including swimming pools.
The portfolio was divested by Grange Hotels, a privately-held hotel group in London.
Following the transaction, Grange Hotels will own and operate 13 hotels, mostly in Central London.
To operate the assets, Queensgate has signed an agreement with Fattal Hotel Group, a €2bn hospitality company with 200 hotels across 18 countries.
Fattal Group will refurbish all these assets and undertake a repositioning strategy to boost performance and growth, thereby increasing its London portfolio to seven hotels and 2,000 rooms.
For the deal, Queensgate secured a completely underwritten debt facility from Société Générale, Carlyle Group and Cheyne Capital Management.
Queensgate Investments chief executive Jason Kow said: “Queensgate is proud to have completed this milestone acquisition which represents circa 1M sqft of high-quality Central London hotels and delivers superior cash on cash returns for our investors.”
Fattal Hotel Group chief executive David Fattal said: “The Fattal Hotel Group is very happy to become active in central London, with the operation of four significant and highly regarded hotels. The four hotels will undergo an extensive renovation plan and will be flagged by our Leonardo Royal and NYX brands. We thank Queensgate for their trust and partnership.”
Grange Hotels spokesperson 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.”
Brown Rudnick and EY advised Queensgate, while HFF Securities served as exclusive financial adviser to Grange.
