Thai investor DTGO Corporation has started talks with lenders to refinance a £460 million UK hotel portfolio, CoStar News understands.
DTGO bought the portfolio of 17 IHG- and Hilton-branded hotels at the end of 2019.
Goldman Sachs financed the acquisition with a £274.75 million senior loan, of which it securitised £270.9 million in the Magenta 2020 PLC commercial-mortgage backed security. Outside the CMBS sits £65.3 million of mezzanine debt, which was provided by Apollo Global Management.
Following the pandemic, DTGO made several equity payments to cover operating and financial shortfalls and reduce the debt. On the original maturity date, noteholders approved a structuring of the loan and pushed out the maturity date to December 2024.
The hotels are operated under long-term franchise agreements from Hilton, IHG and Marriott. The portfolio is managed by Valor Europe.
The biggest hotel in the portfolio, by market value at issuance, is the DoubleTree by Hilton in Manchester. The hotel has 285 keys and was valued at €53.1 million in 2019.
Meanwhile, KKR is on the hunt for £600 million of debt to finance the acquisition of a UK hotel portfolio, as reported. The US private equity firm is in advanced talks to buy the circa £900 million portfolio of 30 Marriott hotels from Abu Dhabi’s sovereign wealth fund, as earlier reported by React News.
DTGO did not respond to a request for comment by the time of publication.