ADIA sells UK Marriotts in £900m deal

KKR and Baupost Group have bought a portfolio of 33 Marriott International hotels across the UK from the Abu Dhabi Investment Authority in a rumoured £900m deal. Amante Capital, KKR’s vertically integrated European hospitality platform, will serve as managing partner for the joint venture and the properties will continue to operate under the Marriott brand. The portfolio consists of 33 full-service properties branded as Marriott and Delta by Marriott in London and prime regional cities including Edinburgh, Glasgow, Leeds and Liverpool. The portfolio comprises a total of 6,500 bedrooms and includes the 311-bedroom London Marriott Hotel Regent’s Park and the 206-bedroom London Marriott Hotel County Hall.  “Our purchase of this impressive portfolio reflects our conviction in the UK and the opportunity we see to invest behind strong fundamentals and long-term growth in the European hospitality sector,” said Mai-Lan de Marcilly, managing director and head of transactions France and Hotels at KKR. She added: “With Amante Capital we have built the capabilities to be a scaled acquirer and operator of premium hotels across Europe. This is our second investment with Marriott International in Europe and expands our global relationship as well as making us the largest owner of premium segment Marriott International hotels in EMEA.” Nick Azrack, partner at Baupost Group, said the deal highlighted the firm’s “continued opportunistic approach to investing in high-quality assets”. KKR Capital Markets and Eastdil Secured arranged financing for the transaction.