London-based asset manager Orchard Street Investment Management has completed the acquisition of two hotels in Newcastle for a combined £38 million (£135,000 per room), from Union Property Development Ltd. The deal included the purchase of the 120-room Travelodge Quayside, which opened in 2017, as well as the adjacent, forward-funded 161-room INNSIDE by Melia, Newcastle, which is set to open in summer 2020. Both hotels are supported by 25-year leases subject to inflation-based rent reviews every five years. The combined purchase price reflects a net initial yield of 4.5%.
Pennsylvania-based Apple Leisure Group (ALG) has announced the signing of an agreement to purchase a majority share of the Spanish hotel chain Alua Hotel & Resorts. Following the deal’s closing, Alua will be integrated into ALG’s European operations, with ALG looking to grow the Alua brand in both Europe and the Americas. Founded in 2015 with the support of European private equity firm Alchemy Partners, Alua currently operates 12 four-star properties, totalling some 3,000 rooms, in Spain’s Balearic and Canary Islands, which are owned by major investors such as KKR and Blackstone. ALG has been owned by KKR and KSL Capital Partners since early 2017.
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