Frogmore and C1 Capital announce the purchase of the Hilton London Olympia for £130M, the Park Inn by Radisson Northampton for £15M and Stifford Hall near Thurrock for £7.2M as part of a newly formed joint venture to pursue a hotel recovery portfolio strategy.
These acquisitions form the second tranche of acquisitions for its fourth value add fund, FREP IV. Previously Frogmore acquired interests in Galliard Homes and three of their London residential developments for FREP IV.
With a combined total of 643 keys across the three hotels, Frogmore and their partners have committed c£70M equity to the projects. Each hotel will be repositioned and rebranded or extended to maximise potential. Hilton London Olympia in particular offers extensive opportunity.
The severe impact of the Covid-19 lockdowns on the hotel industry has provided compelling opportunities for FREP IV to acquire trading hotels in attractive locations. The hotels have been acquired in a joint venture with C1 Capital bringing together Frogmore’s property expertise with C1 Capital’s specialism in the hotel sector and will focus on the acquisition, refurbishment, and repositioning of hotels throughout the UK.
“Our strategy is to source hotels which are under-performing or in need of capital expenditure in order to revitalise the offering and improve the hotel performance,” said Jo Allen, Chief Executive at Frogmore. “We’ve worked alongside Gerard and his colleagues at C1 Capital for nearly 20 years and are delighted to be partnering with them on this initiative.”
