Private investment firm Starwood Capital Group has acquired hotel firm Principal Hayley Group for an undisclosed sum.
The long-awaited deal sees Starwood fold Principal Hayley's 23 city centre hotels and conference and training venues across the UK and Europe into its growing portfolio which includes the Louvre hotel group, comprising 1,100 hotels across 39 countries, and interests in many of the Meridien hotels including the Etoile in Paris and the Eden in Rome, as well as the luxury Baccarat Hotel & Resorts brand and the lifestyle eco-brand, 1 Hotels & Resorts.
Principal Hayley's hotels include the George, Edinburgh, the St David's Hotel, Cardiff, the Grand Central Hotel, Glasgow and the Hotel Russell, London.
Barry Sternlicht, chairman and chief executive of Starwood Capital Group, said: "This transaction marks an exciting investment in the European hotels and conferences sector and provides a great management platform for us to expand further in Europe. Principal Hayley's assets include historic and iconic properties strategically located in many key city centre locations."
"We intend to use our capital and branding expertise to maximize the value of each property in the portfolio," said Jeff Dishner, senior managing director of Starwood Capital Group. "We look forward to working with the Principal Hayley management team to grow the enterprise."
Roger Devlin, chairman of Principal Hayley, said: "I believe it is a significant achievement in challenging market conditions to have delivered a fair exit multiple for stakeholders within a disciplined timeframe. This is the right deal for customers and employees alike."
Tony Troy, chief executive of Principal Hayley, said of the transaction: "We are pleased with the opportunity to work with Starwood Capital, which has extensive experience in the hospitality sector and a very strong track record. We look forward to the future development of the Group as a platform for growth."