Investment heavyweights KKR and The Baupost Group have joined forces to acquire 33 Marriott International hotels scattered across the UK. The portfolio, formerly owned by a subsidiary of the Abu Dhabi Investment Authority (ADIA), is now under the control of this new power duo. Amante Capital, KKR’s hospitality arm in Europe, will run the show as the managing partner, keeping these properties firmly in the Marriott branded family.
This impressive collection includes 33 deluxe hotels, flying the Marriott and Delta by Marriott flags. With properties in London and key cities like Edinburgh, Glasgow, Leeds, and Liverpool, it boasts around 6,500 rooms. Recently refurbished with a focus on quality, they feature perks like spaces for events, golf courses, and other ways to chill or connect. Business travelers, leisure guests—you’re covered.
Why Did They Go Big?
KKR’s Managing Director Mai-Lan de Marcilly explained it best:
Our purchase of this impressive portfolio reflects our conviction in the UK and the opportunity we see to invest behind strong fundamentals and long-term growth in the European hospitality sector. With Amante Capital we have built the capabilities to be a scaled acquirer and operator of premium hotels across Europe. This is our second investment with Marriott International in Europe and expands our global relationship as well as making us the largest owner of premium segment Marriott International hotels in EMEA.
Good News for Marriott and Guests
Guests checking in at these hotels can relax knowing the Marriott name isn’t going anywhere. Amante Capital plans to keep things fresh with further upgrades and ongoing investment. Alongside Marriott’s UK team, they focus on making every stay memorable. Whether business or leisure, they’re all about guest satisfaction at each location.
For Marriott International, this partnership solidifies its premium branding in Europe, especially with KKR becoming the largest owner of its high-end hotels in the EMEA region. Think of it as a win-win for their reputation and millions of travellers.
Who Else Was Involved?
A transaction this size wasn’t handled over a cup of coffee. DLA Piper, Ropes & Gray, and Simpson Thacher Bartlett tackled legal work for KKR and Baupost. KKR Capital Markets and Eastdil Secured sorted out financing, while Hamilton Pyramid acted as asset manager. ADIA turned to Eastdil Secured for advice and had Burges Salmon handle their legal side.
KKR Keeps Busy
KKR isn’t a newbie to the UK real estate game. Since 2016, it has poured over $3.5 billion into ventures like hospitality, residential properties, student housing, and logistics. This latest move fits right into their “value-add and opportunistic” strategy for making good on their investments.
KKR and Baupost’s plan? To secure their footing in the competitive hospitality market while keeping guests happy and properties thriving. Travelers can rest easy—it’s all about delivering high-quality stays.
