The first hotel REIT in the UK is to list today with a portfolio of £2.6bn.
This morning Vector Hospitality, a partnership between The Alternative Hotel Group, Bank of Scotland Corporate and RBS, announced its plans to raise around £2bn of equity.
Richard Balfour-Lynn, non-executive director of Vector, said: ‘The introduction of REITs in the UK offers a compelling opportunity to create a substantial dedicated hospitality company.’
The hotels are leased back to the operating companies and the structure creates a stable income stream with agreed base rents.
Richard Balfour-Lynn, head of Marylebone Warwick Balfour (MWB), and Sir David Michels, the Hilton Group’s former chief executive, are on the management team of Vector.