CMS advises Algonquin on €420 million hotel portfolio transaction

CMS has advised regular client Algonquin SA, the Belgium-based hotel investor and asset manager, on its latest major multi-jurisdictional transaction. A consortium consisting of Benson Elliot, Walton Street Capital and Algonquin has acquired a portfolio of eight prime hotels in key European gateway cities across five countries for approximately €420 million from the US REIT, Host Hotels & Resorts, Inc. CMS advised Algonquin on their joint venture aspects of the acquisition.

This is the sixth transaction undertaken by Algonquin on which CMS has advised in the last five years. Most recently in May 2015, CMS advised both Algonquin and Benson Elliot as joint venture partners on the successful sale of the Novotel Edinburgh Park hotel to a Middle Eastern investor, after having acquired the hotel out of administration at the bottom of the market in 2010.

Thomas Page, the Global Head of the CMS Hotels & Leisure Group, together with Jochen Reuter, a senior associate from the CMS Frankfurt office, on secondment to London, advised Algonquin on the Host portfolio transaction. Paul Hastings advised the joint venture consortium on the acquisition. Freshfields advised Host Hotels & Resorts as seller. Maciej Pietrzak (London corporate), Alexandra Tuck (Tax) and Christian Delgado (Amsterdam corporate) assisted Thomas Page on the Novotel Edinburgh disposal.

Stéphane Obadia, Head of Acquisitions at Algonquin, commented: “We have a great deal of trust in Tom and the CMS Hotels team and we value both their technical skills and commercial approach on our complex transactions. Their understanding of the hotels investment market has been of tremendous support.”

Further information: http://algonquin.be/en/news/joint-venture-of-benson-elliot-walton-street-algonquin-book-into-pan-european-hotel-portfolio-for-e420-million/