Citing rumors, French diversified real estate investment trust Foncière des Régions confirmed that it is holding exclusive-rights discussions with Starwood Capital to acquire a 14-hotel U.K. portfolio.
The company will make the proposed purchase through its unit Foncière des Murs, according to a release. The portfolio, which operates under Principal Hotels Co., comprises 14 4- and 5-star hotels totaling 2,626 rooms. Nine properties are in England, located across Birmingham, Leeds, Liverpool, London, Manchester, Oxford, Wotton and York; four in Edinburgh and Glasgow in Scotland; and one in Cardiff, Wales. It also comprises an under-development hotel.
Foncière expects to finalize a deal by the end of the 2018 first half.
It was reported earlier in March that Starwood was holding a £1.2 billion auction for Principal Hotel and that InterContinental Hotels Group PLC and its partner were eyeing 12 city center hotels under the Principal brand. Former Goldman Sachs executive Nick Weber's Henderson Park and Millennium & Copthorne Hotels PLC chairman's CDL Hospitality Trusts were among the parties interested in the hotel company.