Private and Igal Ahouvi Group Acquire 47 Full Service Marriott Hotels with
Approximately 8,500 Rooms Located throughout the United Kingdom
for US$2.2 billion
|LONDON - April 16, 2007 - A group of investors led and advised by Quinlan
Private (“QP”), a leading international property investment and advisory
group, and Igal Ahouvi Group (“IA Group”), an international real estate
investor, today announced that they have completed the acquisition of a
portfolio of 47 hotels in the United Kingdom (the “Portfolio”) operated
by Marriott International, a leading international hotel group. Total consideration
for the transaction is approximately £1.1 billion (US$2.2 billion).
This transaction is the first major investment of Quinlan Private’s recently opened London office. The office comprises a transaction team led by Pauline Bradley and a private client team led by Ruth Kennedy.
Quinlan Private is the single largest investor in the Portfolio. IA Group is investing on behalf of a consortium of international investors including Electra, First International Bank of Israel and Delek Real Estate. As part of the terms of this transaction, QP and IA Group will jointly control all decisions with QP leading the asset management function. QP has extensive expertise and a proven track record in the management and operation of hotels which includes: the Four Seasons hotels in Dublin, Prague and Budapest, the Maybourne Hotel Group of super-luxury hotels in London and Targa Hotels in Central Europe.
The Portfolio comprises 47 four and five-star luxury hotels with approximately 8,500 rooms located throughout the United Kingdom. The hotels are currently operated by Marriott International, through its Marriott Hotels & Resorts brand, under the terms of 30 year management agreements which commenced in 2006. The Portfolio has a balanced geographic spread with 39 hotels throughout England, 5 in Scotland and 5 in Wales. In addition, the Portfolio has a balanced sector mix including hotels in London, other major urban centres throughout the UK, airport hotels and golf/resort hotels.
Peter Donnelly, Partner, Quinlan Private commented “We are delighted to announce the successful completion of this transaction together with our partner, Igal Ahouvi, an experienced and successful international real estate investor. We are acquiring premium hotel sector assets in an economy which continues to show good growth.”
He added “On behalf of the investor group, we will lead the asset management function of the Portfolio and, reflecting our expertise in the premium hotel sector, see significant opportunity to enhance operating performance together with the Marriott Group.”
Pauline Bradley, Head of Transactions, Quinlan Private, commented “This is one of the best hotel portfolios in terms of asset quality and geographic spread within the UK. It provides unparalleled diversification which will sustain strong cash flows and capital appreciation. We look forward to working with our partners and the Marriott team to enhance returns and deliver value for our investor group.”
Olan Cremin, CEO, Quinlan Private, concluded “This transaction is an opportunity for QP to extend its premium hotel portfolio and is the first major transaction completed out of our London office where we have built a strong and experienced team. We will continue to focus on opportunities to invest in prime assets to build on our track record of delivering superior returns.”
About Quinlan Private
Quinlan Private is a leading international private equity real estate group. Quinlan Private acts as a principal and advisor in originating, structuring, financing, developing and managing a diversified portfolio of assets. These assets include several luxury hotels, commercial office blocks, prime retail properties, shopping centres, car parks and residential/commercial developments throughout Europe and North America. It has effective distribution capacity and partners with major international banking groups to place private equity in real estate investments. Today, total assets under management exceed €9 billion.
About Marriott International
Marriott International, Inc. (NYSE:MAR) is a leading worldwide hospitality company with more than 2,800 lodging properties, totalling nearly 515,000 rooms, including more than 10,000 vacation ownership villas, in the United States and 67 other countries and territories. It is ranked as the lodging industry’s most admired company and one of the best places to work for by FORTUNE®. The company is headquartered in Washington, D.C. In fiscal year 2006, Marriott International reported sales from continuing operations of $12.2 billion, and the company had approximately 151,000 employees at year-end 2006. For more information, please visit the web site at www.marriott.com Marriott International operates a portfolio of brands including Marriott Hotels & Resorts, Renaissance Hotels & Resorts, Bulgari Hotel & Resorts and The Ritz-Carlton among others.
K Capital Source
|Also See:||Hilton Selling the 1,054-room Hilton London Metropole and the 794-room Hilton Birmingham Metropole - to Tonstate Property Group for £417 million (approx US $785 million) / October 2006|