Property News · February 16, 2016

Al Habtoor Group buys historic Vienna hotel from Starwood



Dubai conglomerate Al Habtoor Group has added its seventh overseas property to its hotel portfolio with an acquisition in Vienna.The company acquired the historic Hotel Imperial from New York-listed Starwood Hotels and Resorts for US$78.8 million, according to the US-based company.The announcement comes just days after Al Habtoor Group said it acquired Hilton London Wembley hotel from an undisclosed owner.
Starwood would continue to operate the Vienna property under the Luxury Collection brand. All the rooms at the historic hotel will be renovated over the next four years as part of the deal. In 2014, the property underwent a $14m restoration of its ground floor, including the lobby, its three food and beverage outlets, and a private event space, according to Starwood.The 138-room Hotel Imperial Vienna was originally built in 1863 as Prince Philipp of Württemberg’s residence. It transitioned into a hotel ahead of the World’s Fair in 1873.
The Connecticut-based Starwood has been selling its assets to stem costs and drive growth, and quite a few of the buyers have been from the Arabian Gulf region.In September Starwood sold The Westin Excelsior Rome to Qatar’s Katara Hospitality for €222m. In May, it sold The Gritti Palace, Venice to Nozul Hotels and Resorts, a wholly owned subsidiary of Doha-based Jaidah Holdings, for €105m.”On the heels of exceeding our $800m asset disposition target in 2015, the sale of Hotel Imperial underscores Starwood’s continued commitment to advancing our asset light strategy to create value for our shareholders,” according to Thomas Mangas, the chief executive of Starwood Hotels and Resorts Worldwide, referring to the sale to Al Habtoor Group.
The total investment by Middle Eastern investors in Europe’s hotel sector in 2014 and 2015 was €4.79 billion, according to research company CBRE.Al Habtoor opened The St Regis Dubai on Shaikh Zayed Road in December, and expects to open W Dubai – Al Habtoor City and The Westin Dubai, Al Habtoor City in the same location this year. It is also developing The St Regis Dubai, Al Habtoor Polo Resort and Club, and a new Metropolitan Hotel on Sheikh Zayed Road.
Al Habtoor Investment also owns Hilton Beirut Habtoor Grand Hotel and Hilton Beirut Metropolitan Palace in Lebanon, the President Abraham Lincoln Springfield – a DoubleTree by Hilton Hotel in the US, the five-star InterContinental Hotel Budapest and five-star Elizabeth Park Hotel, Budapest.In December, the company said they had allocated Dh2bn for overseas investments this year.ssahoo@thenational.ae
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Source : thenational.ae
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