Two regional hotels sold as part of £246m deal

Hilton Hotels in Leeds city centre and York have been sold as part of a wider deal worth £246m.

The hotel was part of the remaining nine properties of the Zinc Hotels portfolio, which have  been acquired by a number of special purpose vehicles controlled by Vivion Investments.

Zinc Hotels, which was led by property developer Vincent Tchenguiz, bought the hotels in 2002 for £335.7m and leased them back to Hilton, which initially retained a 40% stake in the properties.

Four years later, Hilton sold Tchenguiz the rest of the interest under an agreement that would see the operator lease them until 2029.

Zinc Hotels, however, fell into administration in February last year.

Rob Stapleton, director in Savills’ hotel team, which marketed the properties, 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.”

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