Historic Acquisition Marks a New Chapter for UK’s Hospitality Market
In a landmark deal, investment giants KKR and Baupost have acquired a portfolio of 33 UK hotels for £900 million from the Abu Dhabi Investment Authority (ADIA). The portfolio, which includes prominent Marriott and Delta by Marriott hotels, features iconic properties such as the London Marriott Hotel County Hall on Southbank and the London Marriott Hotel Regent’s Park.
This high-profile transaction follows KKR’s successful acquisition of the Park Grand London Kensington Hotel earlier this year. With financing from Société Générale, Bank of America Merrill Lynch, and Deutsche Bank, the acquisition marks KKR’s ambitious entry into the UK’s hotel market. The 66% loan-to-value ratio reflects a value-add investment strategy, hinting at substantial asset management plans to enhance property performance over time.
Adding intrigue to the acquisition, Hamilton Pyramid Europe, the portfolio’s asset manager, recently merged with Axiom Hospitality—a move set to expand its European hotel presence to over 48 properties. This merger bolsters Hamilton’s position as a major player in third-party hotel management, particularly timely as UK hotel assets continue to attract significant investor interest despite economic uncertainties.
Other Notable 2024 UK Hotel Deals Include:
- Pandox: 3 Residence Inn aparthotels in London (acquired from Starwood)
- B&B Hotels: 5 Penta Hotels in regional UK
- Blackstone: Village Hotels (acquired from KSL)
- Ares and EQ Group: 21 Novotel and Ibis Hotels (acquired from Landsec)
- Starwood: 10 Radisson Blu Hotels (acquired from Edwardian Hotel Group)
- Archer Hotel Capital: 2 Hoxton Hotels in Shoreditch and Holborn
- Travelodge: 66 Travelodge-branded hotels (acquired from LXI REIT)
With strong investor appetite, the UK’s hospitality sector remains buoyant, showing sustained momentum in 2024.
