London and Birmingham Hilton owners add to portfolio

16 July 2007 by
London and Birmingham Hilton owners add to portfolio

The owners of the Hilton hotels in London and Birmingham have invested £35.3m adding the hotel group's Cardiff property to their portfolio.

Property companies Tonstate Group, Property and Building Corp and Destiny, which bought the London and Birmingham Hilton Metropoles for £417m in late 2006, have joined forces again to take on the property in the Welsh capital.

The hotel, which is expected to have an operating profit of £3.5m in 2007, has 200 rooms and is managed by the Hilton hotel chain on a 20-year contract.

Under the terms of the deal, Tonstate will take on 60% of Hilton Cardiff, with the other two Israeli-based firms sharing 20% each.

The group will finance the purchase through a loan for £29m, and £6.3m in shareholders equity.

The move comes a week after Hilton Hotels Corporation was taken over by private equity firm Blackstone in a deal worth nearly £10b.

£10b Hilton deal will not be the last >>

By Daniel Thomas

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