HotelsProperty

Frogmore joint venture acquires Hilton London Olympia for £130m

All of the hotels that have been acquired throughout the UK will be repositioned and rebranded or extended to ‘maximise potential’

The Hilton London Olympia has been sold for £130m as part of a newly formed joint venture between Frogmore and C1 Capital to pursue a hotel recovery portfolio strategy.

As part of the joint venture, the Park Inn by Radisson Northampton has also been acquired for £15m and the Stifford Hall near Thurrock for £7.2m.

These acquisitions form the second tranche of acquisitions for its fourth value add fund, FREP IV. Previously, Frogmore acquired interests in Galliard Homes and three of its London residential developments for FREP IV.

With a combined total of 643 keys across the three hotels, Frogmore and its partners have committed c£70m equity to the projects. Each hotel will be repositioned and rebranded or extended to “maximise potential”.

Frogmore said the impact of the Covid-19 lockdowns on the hotel industry has provided “compelling opportunities” to acquire trading hotels in “attractive” locations. The joint venture will focus on the acquisition, refurbishment, and repositioning of the hotels that have been acquired throughout the UK.

The Park Inn Hotel in Northampton and the Stifford Hall hotel in Thurrock occupy the select service (budget) hotel market, which Frogmore said is anticipated to recover the quickest. Both have “excellent” conference and wedding offerings and there is reportedly pent up demand in these areas.

Jo Allen, chief executive at Frogmore, said: “Our strategy is to source hotels which are under performing or in need of capital expenditure in order to revitalise the offering and improve the hotel performance.

“We’ve worked alongside Gerard and his colleagues at C1 Capital for nearly 20 years and are delighted to be partnering with them on this initiative.”

Gerard Nolan, chairman of C1 Capital, added: “Our long-term partnership creates the perfect union of Frogmore’s development skills and their ability to gain planning consent with our operational skills to improve the assets. As a team we’ll continue to identify hotel assets that can be repositioned and/or redeveloped.

“Several aspects attracted us to the Hilton London Olympia. Occupying a prominent location on Kensington High Street, the 405-bedroom hotel is also adjacent to Olympia, which is currently undergoing a £1.3bn redevelopment expected to attract an extra £9m per year to the local economy.”

Back to top button