KKR and The Baupost Group have purchased a portfolio of 33 Marriott hotels across the UK from the Abu Dhabi Investment Authority (ADIA).
Amante Capital, KKR’s vertically integrated European hospitality platform, will serve as managing partner for the joint venture and the properties will continue as premium Marriott branded hotels.
The portfolio consists of 33 full-service properties branded as Marriott and Delta by Marriott in London and regional cities including Edinburgh, Glasgow, Leeds and Liverpool.
Amante Capital will manage the portfolio on behalf of the joint venture. Working closely with Marriott International’s UK team, Amante will oversee a programme of continued capital investment.
KKR has been a long-term investor in UK real estate, having deployed over $3.5 billion of capital since 2016 across hospitality, residential, student housing and logistics properties. KKR is making the investment primarily through its value-add and opportunistic European real estate strategy.
What they said
Mai-Lan de Marcilly, managing director and head of transactions France and hotels at KKR, said: “Our purchase of this impressive 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. 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 and expands our global relationship as well as making us the largest owner of premium segment Marriott International hotels in EMEA.”
Nick Azrack, partner, The Baupost Group, said: “This venture highlights our continued opportunistic approach to investing in high-quality assets. We are excited to collaborate with Amante, KKR and Marriott International on the future of these hotels.”