Deals continue in the European hotel market, albeit at a slower pace, according to data from HVS’ Hotel Transactions in Europe Newsletter for the week ending March 15.
Among the deals that appear to have been floated or completed this week is a £1.9 billion takeover of London’s LXi REIT, including its 144 UK hotels, by Britain’s REIT London Metric Property Plc.
The latter held a multi-sector property portfolio across the UK, which included 144 hotels, including 135 Travelodges, 7 Premier Inns, the Jurys Inn in Plymouth and the Cambridge Belfry Hotel.
With this acquisition, the total portfolio will reach approximately £6.2 billion across the board, making LondonMetric the UK’s fourth-largest REIT by market capitalisation.
Of the 135 Travelodges, 123 (6,557 rooms) were acquired in one transaction in July 2022. This transaction follows the sale by LXi of a strong portfolio of 66 hotels to lessor Travelodge earlier this year, as stated in the European Bulletin of Hotel Transactions dated January 16, 2024.
Meanwhile, international hotel group Hilton Hotels & Resorts has signed an agreement to acquire all rights to the Graduate Hotels brand, with 33 properties in the US and UK, for $210 million, from Nashville-based property investment manager Adventurous Journeys (AJ) Capital Partners.
Following the acquisition, AJ Capital Partners will remain the owner of the existing assets as well as two ongoing hotels, which will also continue to operate under long-term franchise agreements with the Hilton Group.
The acquisition is expected to bring Hilton, which will be responsible for the future growth and evolution of the brand, $16 million in franchise fee revenue during its first full year of ownership.
Another investment move in the European hotel industry concerns the acquisition of the four-star Bedford Corner Hotel, in London, by the hotel company NUMA Group, based in Berlin and the British group New World Hospitality.
The 86-room hotel is located in the central area of Bloomsbury, close to the British Museum, Oxford Street and the University of London. Following renovations, including upgrades to incorporate NUMA’s digital technologies that allow guests to use their smartphones to check in and check out, access their rooms, and communicate with customer service staff, the hotel will operate under the NUMA Bloom brand.
The acquisition marks Numa’s first venture in the UK and its portfolio now includes 5,850 rooms in 33 cities in 15 countries. The group will seek to continue its UK expansion to major cities such as Manchester and Edinburgh.
Finally, the Spanish holding company Grupo Fuertes and the Canary Islands real estate developer and operator, Satocan, acquired the four-star Hotel Tenerife Golf & Sea View in Tenerife.
The 125-room hotel is a ten-minute drive from Tenerife South Airport and within walking distance of Amarilla Golf Course.
The hotel, now managed by Satocan, which operates 6 hotels in Spain, will undergo an extensive renovation during 2025.
Grupo Fuertes previously acquired the 1,200-room Marina d’Or Resort in Oropesa del Mar, Spain in November 2023.
