Kennedy Wilson Europe Real Estate has recently completed the acquisition of eight loans secured by first ranking mortgages over eight Park Inn hotels across the UK from two financial institutions. The purchase price for the loans is £61.5m reflecting a gross yield on cost of 9.3%. The acquisition will be funded from the Company’s cash resources. The borrowers acquired the portfolio of hotels in 2006 and 2007 for £131.5m and the total claim at completion on 16 February 2015 was £99.8m.
The portfolio includes seven Park Inn hotels in England (Northampton, Lakeside, Telford, Bedford, Harlow, Birmingham West and Nottingham) and one in Wales (Cardiff) totalling 1,107 rooms. The hotels are leased to Rezidor Hotel Group (“Rezidor”) until 2030 (WAULT 15.7 years). Rezidor is a Nasdaq OMX Stockholm exchange listed hospitality business, majority owned by Carlson. It owns the Park Inn and Radisson hotel brands and the eight Park Inn hotels form part of larger Park Inn portfolio of 19 hotels in the UK and 155 globally.
KWE : Kennedy Wilson Europe buys Park Inn hotels