CBRE Hotels advised on sale of the London and Birmingham Hilton Metropole Hotels

London, 8 August 2017 – CBRE Hotels has advised private investors on the sale of The London and Birmingham Hilton Metropole Hotels to Henderson Park Capital, in one of the largest deals in the UK hotels market this year.

The Hilton London Metropole comprises of 1,059 rooms and is located on Edgware Road close to Paddington Station, which offers quick access to Heathrow airport and from 2018, the new Crossrail/Elizabeth line.  It is London’s largest conference hotel by delegate capacity and the second largest hotel by room count. The Hilton London Metropole is a freehold property on 1.7 acres of land, making it the largest Hilton-operated hotel in Europe.

The Hilton Birmingham Metropole is the UK’s largest hotel outside of London with 790 rooms and the UK’s largest conference hotel by delegate capacity with 33 banquet and meeting rooms for up to 2,000 delegates. The hotel is located on long leasehold land and is positioned at Birmingham’s National Exhibition Centre and adjacent to Birmingham International Airport and future HS2 train station.

Paul Kapiris, Director, CBRE Hotels Investment Properties, commented: “The sale of The Metropoles is a clear signal to the market of the continuing strong desire for London and UK hotels from the international investors.  This year we have seen a 12.2% increase year-on-year in room revenue in London, and this increased performance is translating into increased demand from global hotel investors. Despite geopolitical uncertainty and an increase in hotel openings, London still remains a key market for hotel investors.”

London hotels performed strongly in the second quarter (Q2) of 2017 and saw an increase in hotel openings. The weak pound has continued to attract international travellers which has allowed hoteliers to drive growth in average rates.

Gross operating profit was up by 14.2% year-on-year in Q2 2017, outpacing growth in revenues and suggesting greater efficiency in the sector. However, London’s hotel operators should be prepared for rising operating costs as inflationary pressures increase.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue).  The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.  Please visit our website at www.cbre.com.