Thai Investors Purchase £160M UK Jupiter Hotels Portfolio
Singha Estates Enters The UK Hotel Investment Market
Leading global property advisor, CBRE Hotels, has completed the sale of the Jupiter Hotels portfolio, to a joint venture between two Thai based property companies, FICO Corporation and Singha Estates for £160million. This deal marks Singha Estates’ maiden entry into the UK hotels investment market.
The portfolio comprises 26 Mercure-branded hotels in primary and secondary UK locations such as Edinburgh, Brighton seafront and Manchester Piccadilly. The sellers, Patron Capital and RBS, acquired the portfolio in 2011 and made significant investments to rebrand and refurbish the assets; the buyers are expected to invest an additional £10 million over the next several years.
Traditionally Asian investors have been looking to acquire core trophy assets in London. However, we are witnessing a flurry of Asian investor activity in regional UK Hotels markets including Singaporean CDL Hospitality Trust’s acquisition of the Cambridge City Hotel, Cambridge for £61.5 million and Millennium Copthorne’s acquisition of the Hard Day’s Night Hotel in Liverpool for £13.8m. We also received a large amount of Asian interest in the London Regency Hotel, Kensington that was recently sold by CBRE for a price in excess of £100 million.
The European real estate market is attracting a broader range of international buyers looking beyond the traditional entry points of office space in London and other gateway cities. By partnering with our CBRE colleagues in Bangkok we are able to match these new entrants with opportunities in Europe that match their return requirements.
“Volatility in the Asian economic arena has thus far carried little impact for the institutional hotel investor owing to their low stock-market exposure; however, the turbulence has undoubtedly added to the urgency for those interested in hotel real estate to deploy a significant sum of capital into Western markets. Asian investors are longer hold players therefore there are lower levels of concern over short-term cyclical fluctuations in market performance.
CBRE Hotels represented Patron Capital and RBS.