French hotel giant Foncière des Régions (FdR) has confirmed that it is in exclusive discussions to acquire a 14-strong hotel portfolio under the Principal Hotels Company brand from Starwood Capital.
The portfolio of four- and five-star hotels includes the Principal York, the Met in Leeds, the Grand in Birmingham and the Principal in London, which is scheduled to open in April. Nine of the properties are located in England, with four in Scotland and one in Wales. Together the deal will comprise 2,626 bedrooms.
The £750m deal could be finalised by the first half of the year "depending on how quickly discussions move forward" FdR said. It is being negotiated through its subsidiary Foncière des Murs.
Hotel investor FdR boasts property assets under management valued at £5.24bn for almost 500 hotels.
Private equity firm Starwood acquired the portfolio in 2013 as part of its acquisition of Principal Hayley in a deal thought to be worth £350m.