FdR has entered into exclusive discussions with Starwood Capital about acquiring 14 properties through its hotel subsidiary Foncière des Murs. The portfolio has a total of 2,626 rooms and includes Blythswood Square and Grand Central Hotel in Glasgow, the St David’s Hotel in Cardiff, and The George in Edinburgh. The recently refurbished Hotel Russell on Russell Square, London WC1, which is thought to be worth around £300 million, is also included. Two hotels from Starwood’s DeVere hotels business have also been incorporated into the sale.
In a statement the company said: „Depending on the progress of the ongoing discussions, this operation could be finalised by the end of first half of 2018. Foncière des Regions is focusing its hotel investments on Europe’s largest cities with more than two million overnight stays per year.”
The price for the 14 hotels is reported to be around £750 million, and is part of a broader £1.2 billion hotel sale currently being undertaken by Starwood Capital.
Starwood Capital is considering its options on the remaining 13 DeVere country hotels and conference venues assets, which are valued at around £425 million. It continues to be active in the UK hotel sector, having raised $7.6 billion for its latest opportunity fund.
FdR is also a strategic investment partner of hybrid hotel brand Meininger Hotels.