Lone Star sells off 25 properties to LRC Group
Lone Star hotel group has closed a €676 million sale that involves the culling of many of its brands across the UK and Ireland. The Texan private equity fund sold the remaining hotels in its Amaris Portfolio, which was formed in 2015. The Amaris Hospitality portfolio was created following Lone Star’s entry into the UK and Ireland hospitality market in 2014 with the purchase of Rock and Salt portfolio from Irish Bank Resolution Corporation (IBRC). This portfolio included a number of distressed property loans by Anglo Irish Bank in the form of loans on several Holiday Inn and Thistle branded hotels. In 2015, Lone Star then purchased Jury’s Inn for €680 million from the Royal Bank of Scotland. A number of purchases of Accor Hotels in the UK followed this, and the Amaris Hospitality portfolio was created as a result.
LRC Groups moves into UK and Ireland
The sale of the remaining 25 properties from Lone Star’s Amaris Hospitality portfolio marks the beginning of a new era for the LRC Group. The Israeli-backed organization will make its debut into the British Isles with this purchase, and considering their focus on buying distressed asset portfolios, it seems as if this purchase is a good fit for them. Following their nearly four year run with Amaris Hospitality in the UK and Ireland, Lone Star has made over £2 billion since they started selling off their assets in the British Isles in 2016. The sale will include 20 Accor branded properties in the UK, as well as five Hilton-branded properties. None of the Jury’s Inn branded hotels will be part of the sale, as Lone Star sold them to Swedish investor Pandox for £800 million in December last year. Chris Dimitriadis, LRC’s director of operations, said, “While we cannot go into detail on the terms agreed in the transaction, we would like to comment that we are very pleased to have exchanged contracts on this exciting portfolio. This is a major milestone in LRC’s strategy to expand its presence in the UK and to increase its European hotel portfolio.”
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