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Intercontinental Hotels Group is set to rebrand 13 properties after they were sold by investment firm Starwood Capital Group, including the newly-opened Principal London.
French investment giant Fonciere des Regions (FdR) has acquired 14 UK properties from Starwood Capital. Although official figures haven’t been released, multiple media outlets report the deal could be worth more than £800 million.
Under an agreement with FdR, IHG will rebrand and operate 12 currently opened hotels and one property in development, including those currently operating under the Principal and De Vere brands.
IHG says it will use the deal to launch the Kimpton brand in the UK, with Principal hotels in London, Manchester and Edinburgh.
The Principal London only opened its doors in April after a significant investment, with a refurbishment project due to be completed this summer.
Starwood Capital launched Principal in 2016 after acquiring the Principal Hayley Group, De Vere Venues, Four Pillars and the Townhouse Collection. De Vere recently completed a total brand transformation in which Starwood Capital invested £100 million to refurbish a large number of properties. It was part of a wider £300 million update to the wider Principal portfolio.
Commenting on the deal, IHG CEO Keith Barr said: “We are focused on continuing to expand our leadership in luxury and upscale, which are both high-value segments with significant growth potential.
“Bringing Kimpton to such an important market as the UK is a key part of our plans, as is the introduction of our new upscale brand, which will provide an exciting, differentiated offering to both guests and owners. Together with the recent acquisition of Regent Hotels & Resorts to our portfolio, we are building real momentum behind our plans to deliver industry-leading net rooms growth.”
The transaction is expected to be completed in the second or third quarter of 2018.