West Midlands hotels bought as part of £61.5m deal
PARK Inn hotels in West Bromwich and Telford have been bought by property investor Kennedy Wilson as part of a £61.5m acquisition.
It has bought the loans of eight Park Inns across the UK from two financial institutions.
The purchase price of £61.5m, reflects a gross yield on cost of 9.3%. The acquisition will be funded from the company’s cash resources.
The hotels are leased to Rezidor Hotel Group until 2030.
Rezidor is a hospitality business, majority owned by Carlson. It owns the Park Inn and Radisson hotel brands and the eight Park Inn hotels form part of a larger Park Inn portfolio of 19 hotels in the UK and 155 globally.
Mary Ricks, president and CEO of Kennedy Wilson Europe, said: “The purchase of the Park Inn loans is a classic KWE deal that capitalises on the synergies between our real estate debt and property professionals.
“This transaction gives us further exposure to the fast improving UK hospitality sector and a high quality covenant that we look forward to actively engaging with to identify various resolution strategies and asset management opportunities to enhance the value of our investment.”
Kennedy Wilson’s global headquarters is in California.
