Henderson Park snaps up Hilton portfolio

Bristol skyline
Aerial view of Bristol city centre. (PhotoLondonUK/Getty Images)

European real estate investment platform Henderson Park has exchanged contracts on the acquisition of 12 predominantly freehold Hilton-branded hotels across the UK and Ireland.

The properties are located in cities, including, London, Edinburgh, Glasgow and Dublin. 

The portfolio was valued at more than £555 million, according to the Financial Times, citing people with knowledge of the terms.

Nick Weber, founding partner of Henderson Park, told the FT that the assets were bought at an “attractive price” but not a “distressed price.”

All 12 hotels are franchised by Hilton and encompass three of its brands: Hilton Hotels & Resorts; Hilton Garden Inn; and DoubleTree by Hilton. Henderson Park is in advanced discussions with the existing manager, Amaris Hospitality, for the ongoing management of the hotels.

Henderson Park said the 2,424 key portfolio offered opportunities for additional value creation across the portfolio through extensions, room renovations, redevelopment of ground floor space to attract external footfall, and alternative use exploration.

Funds managed by Henderson Park control other assets operated by Hilton, including two of the largest hotels in the UK in London and Birmingham.

Finance for the transaction was provided by Apollo. Henderson Park was advised on financing by Eastdil. The transaction is expected to close later this year.

What they said

Nick Weber, founding partner of Henderson Park: “This transaction presents us with a rare opportunity to acquire a large, high-quality portfolio of assets, timed to capitalise on the potential for a near term return to travel as well as a wider post-pandemic recovery over the years to come. Hospitality remains a high conviction asset class for Henderson Park, and one where we have an experienced team who are excited to manage this landmark portfolio.”

Christophe Kuhbier, managing director at Henderson Park: “We believe these assets can deliver reliable cash flow, being located in key business and tourism hubs, and see an opportunity to drive growth through hands on management. We’ve worked closely with Hilton before and look forward to continuing our partnership and replicating our successes again.”