Starwood Capital has appointed agents to sell
£180m worth of its hotel portfolio across 19 venues, in a further indication
that the UK residential market may be over supplied.
An increasing national demand
for retirement homes is thought to have prompted the move by the US private equity
company to appoint Christie + Co to market 19 assets from its hotel businesses
acquired in the past two years.
The sale, or ‘Project Milan’
as it is dubbed, includes 11 De Vere hotels, seven Principal Hayley Hotels
and one Four Pillars hotel – the Oxford Witney.
‘Milan’ also includes
15,422sqm of conference space within the properties involved and the sales
marketing literature is promoting “potential across the portfolio for
The combined portfolio
commanded revenues of £68m in 2014.
Starwood bought the 23 hotels
owned by Principal Hayley in 2013 and completed the purchase of De Vere’s
hotels and conference venues the following year.
Four Pillars – a portfolio of
five owned and leased hotels and one managed hotel – was bought in January 2014.
sources told CN: “Starwood
appears to have packaged up a number of the smaller De Vere venues and old
Hayley conference centres which have been hardest hit by the structural shift
away from residential training and sweetened the pot with a couple of
hotels. No surprises that Starwood wants to concentrate on developing the
bigger venues, but whether there is a buyer out there for these older smaller
properties who can unlock value remains to be seen particularly as many sit in
sensitive green belt sites.”
Following the sale, Starwood
will remain owner of 16 Principal Hayley and 12 De Vere hotels.
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