Blackpool's Hilton hotel sold as part of Â£135m deal.
Blackpool's Hilton Hotel has new owners after it was sold as part of a group deal worth Â£135m.
The huge hotel on North Promenade has played a prominent role in the hotels sector in Blackpool with its 278 bedrooms, 11 conference rooms, swimming pool sauna and restaurants.
Starwood Capital Group, a global private investment firm, has announced that one of its funds has acquired a portfolio of seven Hilton hotels in the United Kingdom, totalling more than 1,300 rooms, from previous owners Park Hotels and Resorts.
Blackpool's Hilton opened in 1982 as The Pembroke alongside the Derby Baths, which were later bulldozed. At that time it was owned by the Birmingham-based Metropole Group a subsidiary of Tiny Rowland’s Lonrho empire.
The hotel became the Stakis Blackpool in 1996 following the £327m takeover of the Metropole Group, before becoming part of the Hilton group in 1999. They put it up for sale in July 2013 but no buyer was found and it was taken off the market three months later. Park Hotels and Resorts was formed in January 2017 as a spin-off company of Hilton.
Starwood Capital Group said it plans to refurbish a number of the hotels in order to "transform operating performance and enhance asset values".
But the hotels will be managed by Kew Green Hotels under franchise agreements with Hilton Worldwide, meaning no initial changes at the Blackpool hotel.
It is the second acquisition in 12 months where Starwood and Kew Green have teamed up, following the successful acquisition of the 298-key Holiday Inn Manchester in April 2017.
Jon Asumendi, Vice President at Starwood Capital Group said: “We are delighted to be partnering with Kew Green on yet another exciting transaction involving prime UK city centre assets.
“We are acquiring this well-located portfolio at a substantial discount to replacement cost and with significant upside potential still to be realised. We look forward to investing in these properties alongside Kew Green and leveraging Starwood Capital Group’s hospitality expertise to maximise portfolio performance and investment returns.”
“Adding seven high quality Hilton branded assets to our Management Platform is an exciting step forwards for the Kew Green Group.
Jamie Lamb, executive chairman, Kew Green Group said: “Adding seven high quality Hilton branded assets to our Management Platform is an exciting step forwards for the Kew Green Group.
"We are also very pleased to be partnering with Starwood Capital Group for a second time to unlock opportunities in the portfolio, where we can create value together.”
Kew Green Hotels operates more than 50 hotels in UK cities, most of which are under franchise agreements with a variety of brands including Holiday Inn, Crowne Plaza, Courtyard by Marriott, ibis Styles and Hampton by Hilton.
The seven hotels bought are Hilton Blackpool (278 bedrooms), Hilton London Angel Islington (188 bedrooms), Hilton Milton Keynes (138 bedrooms), Hilton Bath City (173 bedrooms), Hilton Belfast (198 bedrooms), Hilton Coylumbridge, Aviemore (175 bedrooms), Hilton Edinburgh Grosvenor (184 bedrooms).