East Midlands hotels sold out of administration as part of £246m deal
Hilton Hotels in Nottingham and at East Midlands Airport have been sold out of administration as part of a £246m deal.
The hotels were part of the remaining properties of the Zinc Hotels portfolio and have been bought by a number of special purpose vehicles controlled by Vivion Investments.
Property developer Vincent Tchenguiz’s Zinc Hotels snapped up the hotels in 2002 for £335.7m and leased them back to Hilton, which initially retained a 40% stake in the properties.
Then, in 2006, Hilton offloaded the rest of the interest to Tchenguiz in a deal that a=would see the operator lease them until 2029. Despite this, Zinc Hotels slipped into administration in February 2018.
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.”