A JOINT VENTURE between U.S. investment firms KKR and The Baupost Group recently acquired 33 Marriott International hotels in the United Kingdom from a subsidiary of the Abu Dhabi Investment Authority. Amante Capital, KKR’s European hospitality platform, will manage the joint venture, with the properties remaining Marriott-branded, the companies said in a joint statement.
The financial details of the deal remain undisclosed, but a Green Street News report estimated the transaction at around $1.16 billion or £900 million.
The portfolio includes 33 full-service Marriott and Delta Hotels by Marriott in London and key regional cities such as Edinburgh, Glasgow, Leeds and Liverpool, the statement said. The 6,500-key portfolio, recently refurbished, features amenities for business and leisure, including conference venues, event spaces, golf and recreation facilities.
The investment is part of KKR’s European real estate strategy.
“Our purchase of this portfolio reflects our conviction in the UK and the opportunity we see to invest behind strong fundamentals and long-term growth in the European hospitality sector,” said Mai-Lan de Marcilly, KKR’s managing director and head of transactions France and hotels. “With Amante Capital, we have built the capabilities to be a scaled acquirer and operator of premium hotels across Europe. This is our second investment with Marriott International in Europe, expanding our global relationship and making us the largest owner of premium segment Marriott International hotels in EMEA.”
Amante Capital will work with Marriott International’s UK team to oversee capital investments and support local teams in attracting business and enhancing guest experiences, the statement said.
“This venture highlights our continued opportunistic approach to investing in high-quality assets,” said Nick Azrack, partner at The Baupost Group. “We are excited to collaborate with Amante, KKR, and Marriott International on the future of these hotels.”
New York-based KKR has invested more than $3.5 billion in UK real estate since 2016, spanning hospitality, residential, student housing, and logistics. Boston-based Baupost Group has more than 30 years of real estate investment experience.
In January, U.S.-based private equity firm Starwood Capital Group acquired 10 Radisson Blu Edwardian properties in London, totaling 2,053 rooms, from Edwardian Hotels London, chaired by Jasminder Singh.
