£507m nine-strong Hilton hotel portfolio changes hands

Savills has completed the sale of the Project Zinc portfolio, on behalf of Zinc Hotels (Holdings) Limited and its subsidiaries – in administration, for £507.5m. The portfolio includes the Hilton London Kensington and nine regional Hilton branded hotels.

The 601-bedroom Hilton London Kensington was sold for £261.5m to Kensington Cola Ltd and was one of the largest single asset hotel sales across Europe in 2018.

The nine regional Hilton hotels were acquired by a number of SPVs controlled by Vivion Investments Sarl for £246m. They are as follows:

· Hilton Hotel, Croydon
· Hilton Hotel, Watford
· Hilton Hotel, East Midlands Airport
· Hilton Hotel and Woodcourt Lodge, Cobham, Surrey
· Hilton Hotel, Nottingham
· Hilton Hotel, Leeds City
· Hilton Hotel, Northampton
· Hilton Puckrup Hall, Twyning, Tewkesbury
· Hilton Hotel, York

All the hotels are operated under occupational lease agreements with a subsidiary of Hilton Worldwide Inc. with an initial unexpired term of circa.11 years.

Rob Stapleton, director in Savills hotel team, commented, “The disposal of the Zinc portfolio is indicative of the unabated appetite for UK hotels, particularly those with attractive lease terms and long-term value enhancement opportunities.

'The offering included a bond-like income structure whilst the scale of the portfolio attracted significant interest from a broad spectrum of global capital sources.

'We are delighted that Savills sourced the purchasers for these hotels and to have completed these high-profile transactions on behalf of the Joint Administrators.”