Covivio unit Covivio Hotels completed the acquisition of nine hotel properties with 1,698 rooms in the U.K. from Starwood Capital Group for £671 million.
The four- and five-star hotels are part of the unit's £858 million, 14-property portfolio transaction with Starwood. The remaining acquisitions will occur in the coming weeks, according to a company release.
Covivio Hotels signed long-term, triple-net leases at the nine properties with InterContinental Hotels Group PLC. InterContinental Hotels had previously expressed interest in acquiring the 2,638-room portfolio.
The French real estate investment trust will finance the entire portfolio transaction through a €300 million capital increase, €454 million of bank debt and €223 million in cash.