Two of UK’s biggest hotels split up in £500m agreement

Advertisment

Property investor Henderson Park, established by former Goldman Sachs manager Nick Weber last year, has approved the purchase of two of the UK’s largest hotels in a contract estimated to be meriting around £500m.

The agreement for the Hilton London Metropole and Hilton Birmingham Metropole indicates the investor’s first movement into UK hotels and brings its shopping spree to date to roughly $1.3bn of assets.

The 790-room Birmingham hotel is the country’s biggest outside the city, while the 1,059-room London capital is the city’s second largest by room number.

They were sold by business module Edward Wojtkowski’s Tonstate property organisation. Weber has a track report in hotel property having previously bought and later exchanged the Jury’s Inn hotel series in 2015 for £680m, a settlement thought to have earned a 3.25x equity interest.

Henderson Park has previously acquired Le Méridien Étoile, the largest hotel in Paris, for €365m (£329m), and The Ledra, a 5-star hotel in Athens.

Hilton will remain the operator of the two acquired UK hotels while Henderson Park’s asset management team sees to improve profitability over the longer term.

Jones Day acted for Henderson Park. CBRE acted for the seller.