KKR And Baupost Confirm £900M Deal For 33 UK Marriott Hotels

U.S. investment giants KKR and The Baupost Group have confirmed the acquisition of a portfolio of 33 Marriott hotels across the UK from the Abu Dhabi Investment Authority in a £900M deal.

The acquisition affirms the popularity of hotel investments across the UK and Europe, with travel remaining a strong growth area despite the end of postpandemic revenge travel.

The hotel estate consists of 33 full-service properties branded as Marriott and Delta by Marriott in London, plus several in cities including Edinburgh, Glasgow, Leeds and Liverpool. The portfolio totals around 6,500 rooms.

Amante Capital, KKR’s vertically integrated European hospitality platform, will manage the portfolio on behalf of the joint venture and will oversee a programme of continued capital investment, the companies said in a statement.

KKR has been a long-term investor in UK real estate, having already deployed more than $3.5B of capital since 2016 across the hospitality, residential, student housing and logistics sectors. The company is making the new hotel investment primarily via its value-add and opportunistic European real estate strategy.

“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,” KKR Managing Director Mai-Lan de Marcilly said of the announcement.

“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.”

Marriott International has also announced new brand extensions, including tented camps, remote lodges and bespoke experiences across brands including The Ritz-Carlton, St. Regis Hotels & Resorts, W Hotels, The Luxury Collection, Edition, JW Marriott and Bvlgari Hotels & Resorts.

Marriott International’s Luxury Group portfolio of more than 529 properties now spans 73 countries and territories, with three new hotels to open before the end of 2024. More than 260 hotels and resorts across Marriott’s luxury portfolio are in the development pipeline, including more than 30 properties expected to open next year.