Blue Mountain Real Estate Group Bid £750m for UK Marriott Hotel Empire
The Mumbai-based Real Estate Advisors, Blue Mountain Group, have placed a £750m bid on 42 Marriott Hotels located across Britain.
It is reported that Blue Mountain have been granted a period of exclusivity by the Royal Bank of Scotland so that they can generate the funds for this deal. However, if Blue Mountain cannot generate the money, it is thought that Singapore based property group, RB Capital, are the next in line to make a bid.
News of Blue Mountain’s exclusivity deal comes as a surprise, as Sahara, another Indian based company who purchased Grosvenor House on London’s Park Lane last year for £470m, were thought to be favourites for in the Marriott Hotel bidding race.
Marriott Hotels were part of the Whitbread Leisure empire until 2007 when Quinlan Private, an Irish company now owned by Avestus Capital Partners and Israeli investors, Delek Global Real Estate and Gale Ahouvi, acquired the hotels for £1.2 billion. Since then, the Marriott Hotel empire have been tied up in a £900m debt held by the Royal Bank of Scotland.
If these 42 Marriott Hotels are sold for the proposed £750m, it will be a positive outcome for RBS, which has even been tipped as a frontrunner to take control of the hotels, pending a strong recovery in the properties’ values.
Once the deal is secured, Search Office Space will be sure to keep you updated on the story as it unfolds. Keep an eye on our News Page for more information on the Blue Mountain bid, and industry related news topics.