Kennedy Wilson completes acquisition of Park Inn hotel loan portfolio

Kennedy Wilson Europe Real Estate has completed the acquisition of the Park Inn hotel loan portfolio for £61.5m.

The group has bought eight loans secured by first ranking mortgages over eight Park Inn hotels across the UK from two financial institutions.

The purchase price reflects a gross yield on cost of 9.3%. The acquisition will be funded from the company's cash resources.

The portfolio includes seven Park Inn hotels in England - Northampton, Lakeside, Telford, Bedford, Harlow, Birmingham West and Nottingham - and one in Cardiff, Wales, totalling 1,107 rooms.

President and chief executive Mary Ricks said: "The purchase of the Park Inn loans is a classic KWE deal that capitalises on the synergies between our real estate debt and property professionals.

"This transaction gives us further exposure to the fast improving UK hospitality sector and a high quality covenant that we look forward to actively engaging with to identify various resolution strategies and asset management opportunities to enhance the value of our investment."