November 2024: Major Hotel Transactions Reshape Europe’s Hospitality Landscape

Europe’s hospitality sector continues to evolve with significant transactions highlighting the region’s appeal to global investors. November 2024 saw dynamic deals in the UK, Spain, Northern Ireland, and France, involving top-tier players and iconic properties.

1. KKR and Baupost Secure 33 Marriott Hotels in the UK for £900 Million

US-based investment giants KKR & Co. Inc. and Baupost Group, with their London operating partner Amante Capital, acquired a portfolio of 33 Marriott and Delta Hotels by Marriott properties in the UK from the Abu Dhabi Investment Authority (ADIA). This £900 million deal marks one of the year’s largest hospitality transactions, including marquee assets such as the London Marriott Hotel County Hall and the London Marriott Hotel Regents Park.

To facilitate the acquisition, a £600 million loan was secured from a consortium featuring Société Générale, BAML, and Deutsche Bank. Notably, KKR’s UK expansion also includes the purchase of the Park Grand London Kensington Hotel earlier this year. This portfolio’s acquisition strengthens Marriott’s foothold in prime UK markets while aligning with KKR’s growing interest in luxury and business travel destinations.

2. Lopesan and Stoneweg Revitalize Madrid’s Hotel Miguel Ángel

A joint acquisition by Lopesan Hotel Group and Stoneweg Hospitality heralds the rebirth of the Hotel Miguel Ángel, a landmark five-star property on Madrid’s Paseo de la Castellana. Purchased from Luxembourg-based GMH SPF for €200 million (€830,000 per room), this hotel has been dormant since the pandemic’s onset.

The property will undergo a comprehensive year-long renovation before reopening under Lopesan’s management. Located near embassies in the upscale Chamberí district, the revamped hotel will cater to luxury travelers, emphasizing Madrid’s appeal as a premier global destination.

3. Galgorm Collection Expands in Northern Ireland with Roe Park Resort and Galgorm Castle

The Galgorm Collection has bolstered its Northern Ireland portfolio with the acquisition of the Roe Park Resort in Limavady and the historic Galgorm Castle in Ballymena for £28 million.

Roe Park Resort, a four-star, 118-room property near the iconic Causeway Coastline, and Galgorm Castle, a heritage site known for its golf course, will benefit from a further £22 million in planned investments. Enhancements include a new adults-only spa and upgraded golf facilities, reflecting Galgorm’s commitment to raising the standard of hospitality in the region.

4. Parisian Charm: Ginto Hotels and Arnaud Family Acquire Hôtel Pilgrim

In France, Ginto Hotels Group and the Arnaud family added the elegant Hôtel Pilgrim Paris – Quartier Latin to their portfolio. This boutique, four-star property opened in late 2023 and is situated in Paris’s 5th arrondissement, opposite the historic Collège des Bernardins and within walking distance of Notre-Dame Cathedral.

Featuring a rooftop terrace, hammam, and pool-equipped spa, Hôtel Pilgrim offers an intimate luxury experience. This acquisition brings Ginto Hotels’ portfolio to six properties across France, reflecting the group’s steady expansion within the mid- to upscale hotel segment.

Regional Dynamics: A Strategic Year for Europe’s Hospitality Sector

These transactions underscore key trends in Europe’s hotel industry:
1. Revitalization of Legacy Properties: Both Madrid’s Hotel Miguel Ángel and Northern Ireland’s Roe Park Resort are slated for ambitious renovations, signaling investor confidence in the long-term appeal of these iconic assets.
2. Portfolio Consolidation: Deals like KKR’s acquisition highlight the rising interest in branded properties, especially those aligned with globally recognized operators like Marriott.
3. Boutique and Luxury Growth: Ginto Hotels’ expansion in Paris reflects increasing demand for personalized, high-end experiences in major urban centers.

As Europe’s hospitality sector adapts to shifting traveler preferences and economic conditions, November’s high-profile transactions reaffirm its status as a hotspot for strategic investments. Whether through upscale developments, heritage preservation, or regional diversification, the continent continues to attract global interest and substantial capital inflows.