KKR is sounding out lenders to provide £600 million of debt to finance the purchase of a UK hotel portfolio it is in the process of buying, CoStar News understands.
Lenders may provide term sheets for one loan to cover all the debt or smaller loans against part of the portfolio, said a source familiar with the situation.
The US private equity firm is in advanced talks to buy the circa £900 million portfolio of 30 Marriott hotels from Abu Dhabi’s sovereign wealth fund, as earlier reported by React News.
The portfolio is the remains of a larger portfolio Abu Dhabi Investment Authority bought from Royal Bank of Scotland. It paid £640 million for 43 hotels in 2013. RBS sold the assets after seizing them from Delek Global Real Estate, Quinlan Private and Igal Ahouvi, which had paid £1.2 billion for the portfolio in 2007.
The portfolio includes the London Marriott Hotel County Hall, which is across the Thames from the Houses of Parliament, and London Marriott Hotel Regent's Park, according to React News.
Earlier this month, KKR and its European hospitality partner Amante Capital, bought the 132-bedroom Park Grand London Kensington Hotel from Bartek Holdings, as reported. The transaction was the first acquisition by KKR and Amante Capital since the launch of their vertically integrated hotel platform in 2022. Amante Capital’s team is focused on sourcing and buying hotel opportunities across Europe, asset management and operational capabilities.
KKR declined to comment.