Following the acquisition of a UK portfolio of 14 four and five-star hotels from Starwood Capital for £858m, Foncie`re des Re´gions - through hotel subsidiary Foncie`re des Murs - the group has separately agreed to sign long-term leases for 13 Principle hotels with InterContinental Hotels Group (IHG).
The estate makes up 2,638 rooms in prime locations at the heart of major British cities: nine are located in England, four are in Scotland (Edinburgh, Glasgow), and one is in Wales (Cardiff), and IHG will rebrand and operate the hotels as part of its luxury and upscale brands portfolio following closing.
The Principal hotels in London and Manchester will join Kimpton, along with one of the two Principal hotels in Edinburgh. The Principal Edinburgh George Street may once again become an InterContinental hotel, having been sold by IHG in 2005.
With two Principal hotels in Glasgow (Grand Central and Blythswood Square), it is expected one will join InterContinental, while the other will become a Kimpton.
A rebranding decision has yet to be made for the Principal hotels in Birmingham (currently under development), Leeds, York, Cardiff and Oxford.
The hotels have recently benefited from various programmes of work (£182m was invested between 2014 and 2018), they offer strong potential for growth and good levels of profitability (EBITDAR margin above 30% of the turnover).