Real-estate investment firm Vastint has announced it is putting a United Kingdom hotel portfolio of Marriott International-branded hotels up for sale, a portfolio it values at £500 million ($672 million), or approximately £151,000 ($203,000) per key.
A press release from JLL, which said the value calculation “[followed] the completion of a strategic review,” said the portfolio, which is operated by Vastint’s in-house platform Hotel Co 51 UK under franchise agreements, comprises 3,230 rooms.
The Marriott brands include AC by Marriott, Courtyard by Marriott and Moxy. They are, according to Vastint, “located in high-demand areas such as city centers, transport hubs and major exhibition venues.”
The hotels, from Scotland south to the English Channel coast of England, are the 191-room AC Hotel Inverness; 181-room Moxy Glasgow Merchant City; 243-room Moxy Glasgow SEC; 230-room Moxy Edinburgh Airport; 118-room Moxy York; 190-; room Courtyard by Marriott Chester City Place; 243-room Moxy Birmingham NEC; 210-room Moxy Milton Keynes; 214-room Moxy Bristol; 164-room Moxy London ExCeL; 437-room Moxy London Heathrow Airport, and 208-room Moxy Southampton.
Vastint also owns a hotel in construction in Newcastle, the 198-room Tribute Portfolio Newcastle Helix, a Marriott soft-branded property, according to CoStar, and that hotel does not appear to be part of the deal.
Vastint is part of the Interogo holding group, a foundation-owned investment group, which is linked to Swedish retailer IKEA.
According to the website of Interogo Foundation, its focus "is to secure independence and longevity of the IKEA Concept and the financial reserves needed to ensure this."
Brokering and administering the deal are JLL and KPMG U.K., which Vastint said it has “separately appointed.”
Kerr Young, head of U.K. national hotels, JLL, said the portfolio “benefits from a well-invested and scaled in-house operational platform underpinned by best-in-class brand recognition,” and KPMG’s Phil Shields, managing director and head of real estate corporate finance, said it “offers significant embedded growth potential and operational upside, underpinned by sustainability and scale.”
In the U.K., Vastint has significant interests—notably in mixed-use developments—in cities such as Cardiff, Leeds, Glasgow and London.
According to CoStar, 49.4% of Vastint’s portfolio, in the U.K. and elsewhere, is in the hotels and hospitality sector and comprises approximately 6.9 million square feet.
Moxy is its largest brand by ownership, with CoStar adding that particular owned portfolio has 37 hotels and 7,889 rooms.
Vastint did not name any specific hotel in the deal.