Fast-growing, pan-European LRC Group announces recent acquisition of Amaris Hospitality
LRC has also announced that it has reached an agreement to add seven Hilton-branded hotels from funds that are managed by Oaktree Capital Management
The fastest-growing pan-European property investor and manager, LRC Group (LRC), has recently announced that it has acquired Amaris Hospitality.
In addition to that announcement, LRC announced that it has also reached an agreement to add seven Hilton-branded hotels from funds that are managed by Oaktree Capital Management, LP (Oaktree). These hotels will be added to the extant Amaris Hospitality portfolio, the financial consideration for which was undisclosed.
More About This Transaction
The aforementioned transaction for the seven hotels, all of which fall under the DoubleTree by Hilton branding, is expected by all to close later this year.
When it does, Amaris Hospitality will then become LRC’s newest hotel investment and management platform. As such, it will manage the new hotels on behalf of LRC. This last development will then bring the total number of hotels that are in the Amaris Hospitality up to a robust total of 30.
This addition of new hotels is all part of LRC’s ongoing plan to accelerate the growth of its hotel investments.
By working through Amaris Hospitality, LRC will be able to create a high performing, long-term investment portfolio that includes a whopping number of 50 hotel assets, all of which are of the highest quality and already internationally branded, two qualities that obviously provide significant value.
In terms of specifics, the seven Hilton-branded hotels make up more than 1,000 contemporary rooms, and they also include extensive conferencing facilities. These properties are major employment engines too, including staffs of approximately 900 people. All told, they will add to Amaris Hospitality’s existing 23 hotels that trade under the following brands: Hilton, Hilton Garden Inn, DoubleTree by Hilton, Mercure and Ibis Styles brands. Between them, they have 3,800 rooms and staffs of approximately 1,800 people.
Peter Stack has been appointed Managing Director of Amaris Hospitality, having previously been Managing Director of Asset Management with the Group. Other key members of the new Amaris Hospitality leadership team include Stephanie Gosling, who has been appointed Commercial Director; David Webster, Senior Operations Director, and Kirstine Rowland, Head of Human Resources.
John Brennan, the outgoing CEO of Amaris Hospitality, has been appointed non-executive Chairman of Amaris Hospitality by LRC and will act as a strategic advisor to LRC on all hospitality investments.
What Hotel Leaders Are Saying
In regards to the recent announcement, Peter Stack, Managing Director of Amaris Hospitality, said:
“We are very excited about working with our new owners LRC Group and as the addition of these seven hotels demonstrates together we have ambitious growth plans for the business. Our strategy will continue to focus on developing and growing our employees, achieving operational excellence and creating a high performing hotel portfolio with a view to delivering long-term, sustainable returns for investors. Key to our strategy will be acquiring and investing in established hotels trading under acclaimed international brands in key strategic locations and we’re delighted to have added seven more DoubleTree by Hilton hotels to our portfolio.”
John Brennan, the new Chairman of Amaris Hospitality, also added:
“I am really looking forward to taking up this role on behalf of LRC and to working with the investors and the Board in supporting Peter and his leadership team as they pursue their ambitious plans for the business.”
The seven hotels to be added to the Amaris Hospitality portfolio are:
- Doubletree by Hilton Bristol North
- Doubletree by Hilton Strathclyde
- Doubletree by Hilton Southampton
- Doubletree by Hilton Dartford Bridge
- Doubletree by Hilton Newbury North
- Doubletree by Hilton Coventry
- Doubletree by Hilton Edinburgh Airport
LRC were advised by Paul Hastings (Europe) LLP and Deloitte. Oaktree was advised by CMS and JLL’s Hotels and Hospitality Group.
Let’s take a look at a few other projects currently underway by Doubletree by Hilton:
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