Savills has completed the sale of the Project Zinc portfolio, on behalf of Zinc Hotels (Holdings) Limited and its subsidiaries – in administration, for a total consideration of £507.5m.
The portfolio comprised the Hilton London Kensington and nine regional Hilton branded hotels.
The 601-bedroom Hilton London Kensington was sold for £261.5m to Kensington Cola Limited and was one of the largest single asset hotel sales across Europe in 2018.
The nine regional Hilton hotels were acquired by a number of SPVs controlled by Vivion Investments Sarl for £246m and comprises Hilton Hotels in Croydon, Surrey, Watford, Nottingham and Leeds City, among others.
All the hotels are operated under occupational lease agreements with a subsidiary of Hilton Worldwide Inc. with an initial unexpired term of circa.11 years.
Rob Stapleton, director in Savills hotel team comments: “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.”