Hotel Portfolio Trades For £525m as UK Tourism Market Remains Strong

Real estate investment company Aprirose has completed a deal to buy Q Hotels from its private equity owners for £525m, in what is the biggest deal for UK hotels this year.

The portfolio of 26 hotels was being sold by Bain Capital Credit and Canyon Partners, who had owned the portfolio since 2014.

Before then, it had been tied up in the Irish Banking Resolution Corporation’s Project Rock, a huge non-performing loan portfolio which emerged out of the Irish financial crisis, after the originally company fell into administration in 2013.

Bain Capital Credit and Canyon Partners paid around £350m for the debt associated with the hotel portfolio.

The Q Hotels are spread across the UK and include the grade II-listed Midland Hotel in central Manchester, which opened in 1903 in order to serve passengers using the nearby Manchester Central railway station.

The acquisition of the portfolio is the largest hotel transaction this year and hints at the strength in the UK tourism market. Q Hotels said earlier this year that it expected a boost to profits as a result of more people taking ‘staycations’ because of the weaker pound.

Aprirose funded the deal through their existing roster of investors, including Chinese firm Cindat Capital Management, and the deal means it now owns more than 6,000 hotel rooms.

Gary Jones, chief operating officer at Aprirose, said the firm’s strategy is to double the value of its assets. “This acquisition is part of a wider strategy and takes our portfolio to around £1.7bn of assets under management,” he added.