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French hotel firm Foncière des Régions (FdR) has confirmed it is in exclusive-rights discussions with Starwood Capital to a portfolio of 14 hotels under the Principal Hotel Company brand.
The portfolio of four and five-star hotels includes the Principal York, the Met in Leeds, the Grand in Birmingham and the Principal in London, which is scheduled to open in April.
The 14 hotels, come to a total of 2,626 guest-rooms, with nine of the hotels located in England (Birmingham, Leeds, Liverpool, London, Manchester, Oxford, Wotton and York), four in Scotland (Edinburgh, Glasgow), and one in Wales (Cardiff).
The deal is said to be worth around £750m and depending on how quickly discussions move forward, the transaction “could be finalised by the end of the first half of 2018”.
Foncière des Régions, a leading hotel investor in Europe has property assets under management valued at €6bn (£5.25bn) for a total of almost 500 hotels, and is using its subsidiary Foncière des Murs to negotiate the deal.
Starwood acquired the principal portfolio in 2013 as part of its acquisition of Principal Hayley in a deal thought to be worth £350m.
