KKR and The Baupost Group have entered a joint venture to acquire a portfolio of 33 Marriott International hotels across the UK. The Abu Dhabi Investment Authority (ADIA) subsidiary previously owned this portfolio. KKR’s European hospitality platform, Amante Capital, will manage this joint venture and the properties will continue to operate under the Marriott brand.
The hotel portfolio includes 33 full-service properties branded as Marriott and Delta by Marriott. These properties are found in key UK locations such as London, Edinburgh, Glasgow, Leeds, and Liverpool. The 6,500-key portfolio has recently undergone high-quality refurbishments. It provides a diverse range of services for business and leisure guests—from conference and event venues to golf and recreational facilities.
Mai-Lan de Marcilly, Managing Director and Head of Transactions France and Hotels at KKR, commented on the acquisition, noting it demonstrates the firm’s confidence in the UK market and the long-term growth potential in the European hospitality sector. This acquisition strengthens KKR’s global relationship with Marriott International and makes them the largest owner of Marriott International’s premium segment hotels in EMEA.
Nick Azrack, Partner at The Baupost Group, shared his excitement about the venture’s potential and reiterated the group’s commitment to investing in high-quality assets.
Amante Capital’s experienced team will manage the portfolio on behalf of the joint venture. In collaboration with Marriott International’s UK team, Amante will oversee a program of continued capital investment and provide dedicated services to support the local teams at each property.
Since 2016, KKR has invested over US$3.5 billion in UK real estate across hospitality, residential, student housing, and logistics properties. This investment was primarily made through its value-add and opportunistic European real estate strategy.
The transaction involved several legal advisors and financiers. DLA Piper, Ropes & Gray, and Simpson Thacher Bartlett were legal advisors to the KKR and Baupost joint venture. KKR Capital Markets and Eastdil Secured arranged to finance the transaction. At the same time, Hamilton Pyramid acted as an asset manager, Eastdil Secured as an advisor and Burges Salmon as legal counsel to ADIA.
Source: https://www.hotelnewsresource.com/article134300.html
Photos Source: London Marriott Hotel County Hall – Image Credit Marriott, Hotel News Resource