Ares Management Corporation, a big company that invests money in different ways, has bought a bunch of hotels from Landsec, another big company. They didn’t buy them alone; they teamed up with EQ Group, who helps run hotels. Before Ares bought them, these hotels were being rented out to another company called AccorInvest for a long time. But now, Ares has ended those rental agreements and will run the hotels themselves. They bought 18 hotels in total, with 3,028 rooms altogether, and they paid £400 million for them.
Key Points:
- Acquisition Parties: Ares Management Corporation, a prominent global investment manager, along with EQ Group, a European hospitality investment and management platform, collaborated to acquire a set of hotels from Landsec, a real estate company. This collaboration suggests a strategic partnership between Ares and EQ Group for managing the acquired hotels.
- Previous Lease Agreement: Before the acquisition, the hotels were fully leased to AccorInvest, indicating that AccorInvest was the tenant renting the properties from Landsec. These leases were long-term, indicating stability in rental income for Landsec.
- Transfer of Operations: Ares, upon acquiring the hotels, entered into an agreement with AccorInvest to terminate these leases and take over the operations of the hotels. This suggests that Ares intends to directly manage the hotels instead of continuing the previous leasing arrangement.
- Portfolio Details: The acquisition involved 18 hotels with a total of 3,028 rooms. This information provides clarity on the scale of the acquisition and the potential revenue generation capacity of the acquired portfolio.
- Purchase Price: The headline purchase price for the acquisition was £400 million. This figure indicates the financial investment made by Ares and EQ Group in acquiring the hotel portfolio.
Overall, the announcement outlines Ares Management Corporation’s strategic move into the hospitality sector through the acquisition of a significant hotel portfolio, signaling their intention to directly manage these properties and potentially leverage them for long-term financial gains.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a prominent worldwide provider of alternative investment management services. Our offerings span primary and secondary investment solutions across various asset classes, including credit, real estate, private equity, and infrastructure. Our objective is to offer adaptable capital solutions that bolster businesses and deliver value to our stakeholders and communities. Through cohesive collaboration among our investment divisions, we aim to consistently deliver attractive investment returns regardless of market conditions. As of March 31, 2024, Ares Management
About EQ Group
EQ Group stands out as a prominent pan-European entity in the hospitality sector, specializing in investment and management. With a significant portfolio encompassing over €3.3 billion worth of hospitality real estate, totaling 9,400 rooms across Europe, EQ has established itself as a key player in the industry. Collaborating with esteemed partners such as hotel real estate investors, investment banks, family offices, and private equity funds, EQ has a proven track record of enhancing value through strategic asset acquisitions and the implementation of multifaceted business strategies. Their diverse portfolio includes internationally recognized branded properties, independent luxury lifestyle hotels, resorts, venues tailored for meetings and events, as well as serviced apartments, strategically located in major European hubs.
Summary
