Starwood Capital’s Louvre Hotels to sell 18 UK properties

Starwood Capital’s Louvre Hotels is looking to sell its 18-strong group of UK budget hotels for £70m, which comprises of 17 Campanile sites and one Première Classe property.​

Campanile, Louvre Hotels' leading two-star chain that operates in nine European countries, currently has a mixture of freehold and leasehold sites in locations across the UK in Cardiff, Glasgow, Birmingham, Liverpool and Manchester.

The 18-strong group is being marketed with the benefit of a management contract with Louvre Hotels under the Campanile brand, a move cited by investment advisory firm Christie & Co, who are marketing the properties, as a rare opportunity to 'acquire a whole group of hotels in one transaction.'

Bulk buying​

Mark Wingett, of investment advisory firm Christie & Co, cited Travelodge’s recent bulk acquisition of 52 Mitchells & Butlers hotels​, the largest UK hotel transaction since 1998, as a significant factor in Starwood Capital’s decision to market the estate.

At the time Grant Hearn, executive chairman of Travelodge, described the budget hotel group's growth plan as ‘aggressive’, saying the company was looking to ‘explore further opportunities with similar businesses'.

However, Jeremy Jones, director at Christie & Co, said the opportunity to operate the hotels with a management contract made the deal 'even more exciting'.

“We anticipate a strong response reflecting the quality of the opportunity and the ability to keep growing one of Europe’s best known hotel brands,” he said.

Premiere Classe​

Louvre Hotels is also marketing its only UK branch of Premiere Classe, a major player in the French budget hotel sector, which opened in Coventry earlier this year​.

The group is also keen to offer a management contract with the aquistion, ensuring the hotel will continue to trade under the Premiere Classe brand.