Starwood Capital Group closes transaction to acquire Principal Hayley Group
- Category: Hotel
- Created on Wednesday, 27 February 2013 15:21
Principal Hayley is a collection of 23 landmark city centre hotels and dedicated conference and
training venues across the UK and Europe. The Principal Hayley portfolio currently includes 23
properties offering a combined capacity of approximately 4,000 bedrooms, over 500 meeting
rooms and ability to host over 26,000 delegates per day in key locations. The group includes
well known iconic city centre hotels such as The George, Edinburgh, the St David’s Hotel,
Cardiff, the Grand Central Hotel, Glasgow and the Hotel Russell, London.
The transaction continues Starwood Capital Group's expansion in the hotel sector, particularly in Europe. The Greenwich, Connecticut-based firm currently owns, among other assets, the Louvre Hotel Group, which includes over 1,100 hotels located in 39 countries, in addition to interests in many of the Meridien Hotels including the Etoile in Paris and the Eden in Rome, as well as the luxury Baccarat Hotel & Resorts brand and the lifestyle eco-brand, 1 Hotels & Resorts which recently announced their first five projects.
Barry Sternlicht, Chairman and CEO of Starwood Capital Group, said: “This transaction marks an exciting investment in the European hotels and conferences sector and provides a great management platform for us to expand further in Europe. Principal Hayley’s assets include historic and iconic properties strategically located in many key city centre locations.”
“We intend to use our capital and branding expertise to maximize the value of each property in the portfolio,” said Jeff Dishner, Senior Managing Director of Starwood Capital Group. “We look forward to working with the Principal Hayley management team to grow the enterprise.” Roger Devlin, Chairman of Principal Hayley, said: "I believe it is a significant achievement in challenging market conditions to have delivered a fair exit multiple for stakeholders within a disciplined timeframe. This is the right deal for customers and employees alike."
Tony Troy, CEO of Principal Hayley, said of the transaction: “We are pleased with the opportunity to work with Starwood Capital, which has extensive experience in the hospitality sector and a very strong track record. We look forward to the future development of the Group as a platform for growth.”