Wiesbaden, 8 February 2024 – Aareal Bank announces its pivotal role in financing the majority of the Edwardian hotel portfolio in London acquired by a controlled affiliate of Starwood Capital Group (Starwood Capital). The portfolio comprises a unique collection of ten hotels with 2,053 rooms, all strategically located in London and operated under the Radisson Blu brand.
Aareal Bank played a crucial role in this transaction, providing a loan for eight assets within the portfolio while acting as the arranger, facility agent, and security agent, thus contributing to the successful structuring and execution of this landmark deal.
Starwood Capital Group, a private investment firm with a core focus on global real estate, currently has approximately USD 115 billion of assets under management. The acquisition adds to Starwood Capital's existing portfolio of European hotel investments, which following the transaction will comprise 47 hotels / approx.10,000 rooms across Europe.
Bettina Graef-Parker, Managing Director, Special Property Finance at Aareal Bank, commented, “We are honoured to support Starwood Capital in this significant acquisition, leveraging our expertise in the hospitality sector and providing financial solutions to realise their strategic vision.”
Tim Abram, Managing Director at Starwood Capital said, "We are delighted to have Aareal Bank as our partner on the acquisition of this one-of-a-kind portfolio of London hotels. The transaction continues our long-standing relationship with Aareal Bank, whose team has a deep and impressive knowledge of the hotel industry.”
This transaction underscores Aareal Bank expertise as a leading international property specialist in financing first-class hotels in prime locations across Europe and beyond.
Key players in this transaction include Pinsent Masons and White & Case, serving as legal advisors to Aareal Bank and Starwood Capital, respectively. Cushman & Wakefield acted as Aareal Bank's external valuation advisor.
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