Hilton Hotels Corporation has sold two of the UK’s biggest hotels to a private family trust for a total £417m
Tonstate, the acquisitions vehicle managed by Dr. Edward Wojakovski, has bought the 1054 room Hilton London Metropole and the 794 room Hilton Birmingham Metropole on a sale-and-leaseback basis.
The deal follows Hilton Hotels’ strategy to grow its managed and franchised hotel business and unlock capital from its valuable property estate. Both hotels are due to exchange before the end of the year.
Hilton will retain long-term management contracts on both hotels and proceeds from the sale will be used to reduce Hilton’s company debt.
Robert La Forgia, executive vice president and chief financial officer of Hilton Hotels Corporation, said: ‘With the expected completion of the sale of the two Metropole properties, our very successful asset sale program will have delivered more than $2bn since early 2005. The hotel transaction market continues to be vibrant, with a high level of market interest and enthusiasm being shown for quality hotel assets.’
Hilton was advised by Christie & Co while Tonstate was advised by CBRE Hotels.