Project Zinc portfolio sale completes for £507.5m

Zinc Hotels Limited and its subsidiaries – which entered administration last month has sold its project Zinc portfolio for a total consideration of £507.5m

Savills handled the sale of the portfolio which included the Hilton London Kensington and nine regional Hilton branded hotels.

The 601-bedroom Hilton London Kensington was sold for £261.5m ( to Kensington Cola Limited and was one of the largest single asset hotel sales across Europe in 2018.

The nine regional Hilton hotels were acquired by a number of SPVs controlled by Vivion Investments Sarl for £246m and comprised the following assets:

·         Hilton Hotel, Croydon

·         Hilton Hotel, Watford

·         Hilton Hotel, East Midlands Airport

·         Hilton Hotel and Woodcourt Lodge, Cobham, Surrey

·         Hilton Hotel, Nottingham

·         Hilton Hotel, Leeds City

·         Hilton Hotel, Northampton

·         Hilton Puckrup Hall, Twyning, Tewkesbury

·         Hilton Hotel, York

All the hotels are operated under occupational lease agreements with a subsidiary of Hilton  with an initial unexpired term of circa.11 years.

Rob Stapleton, director in Savills hotel team said: “The disposal of the Zinc portfolio is indicative of the unabated appetite for UK hotels, particularly those with attractive lease terms and long-term value enhancement opportunities.

“The offering included a bond-like income structure whilst the scale of the portfolio attracted significant interest from a broad spectrum of global capital sources. We are delighted that Savills sourced the purchasers for these hotels and to have completed these high-profile transactions on behalf of the Joint Administrators.”