Starwood Capital acquires Principal Hayley

Private investment firm Starwood Capital Group has announced that an investment fund affiliated with it has finally acquired conference and events hotel group, Principal Hayley.

Terms of the transaction were not disclosed.
 
Principal Hayley is a collection of 23 city centre hotels and dedicated conference and training venues across the UK and Europe. The properties offer a combined capacity of 4,000 bedrooms, 500 meeting rooms and ability to host over 26,000 delegates per day in key locations. The group includes city centre hotels such as The George, Edinburgh, the St David’s Hotel, Cardiff, the Grand Central Hotel, Glasgow and the Hotel Russell, London.
 
The transaction continues Starwood Capital Group’s expansion in the hotel sector, particularly in Europe. The Greenwich, Connecticut-based firm currently owns, among other assets, the Louvre Hotel Group, which includes over 1,100 hotels located in 39 countries.
 
Barry Sternlicht, Chairman and CEO of Starwood Capital Group, said: “This transaction marks an exciting investment in the European hotels and conferences sector and provides a great management platform for us to expand further in Europe. Principal Hayley’s assets include historic and iconic properties strategically located in many key city centre locations.”
 
“We intend to use our capital and branding expertise to maximise the value of each property in the portfolio,” said Jeff Dishner, Senior Managing Director of Starwood Capital Group. “We look forward to working with the Principal Hayley management team to grow the enterprise.”

Roger Devlin, Chairman of Principal Hayley, said: “I believe it is a significant achievement in challenging market conditions to have delivered a fair exit multiple for stakeholders within a disciplined time frame. This is the right deal for customers and employees alike.”
 
Tony Troy (pictured), CEO of Principal Hayley, said of the transaction: “We are pleased with the opportunity to work with Starwood Capital, which has extensive experience in the hospitality sector and a very strong track record. We look forward to the future development of the Group as a platform for growth.”
 
Citigroup arranged and underwrote the senior debt facility to support Starwood’s acquisition.

Goldman Sachs acted as financial adviser to Principal Hayley Group and Lloyds Banking Group.
 
Do you have news for CN? Email: pcolston@mashmedia.net

Paul Colston

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Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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