M&C grabs 28 US hotels
Millennium & Copthorne (M&C) has clinched a deal to buy 28 US hotels owned by Regal Hotels International for $640m (£395m).
Since the transaction was announced in September, M&C has knocked $85m (£52.4m) off the price. It has dropped joint-venture plans with Regal and excluded the Constellation airport hotel in Toronto from the deal.
It is understood that the two companies could not reach an agreement on the value of the Toronto property.
The acquisition includes Richfield Hospitality Services, which manages 19 hotels.
M&C became a global player when it doubled in size after acquiring CDL Hotels Asia-Pacific in April, but it had only three hotels in the USA, all in New York.
Regal gives it 12 upmarket, business-orientated hotels in key US cities such as Los Angeles, Chicago, Boston, Minneapolis and St Louis. These hotels will undergo a $60m upgrade before changing their name to Millennium.
M&C may sell up to 10 non-core properties, including eight full-service and eight limited-service hotels.
M&C has arranged a £228m bank loan, and hopes to raise £156m through an open offer of 42.3 million new shares to raise funds for the deal.
