Kennedy Wilson completes acquisition of Park Inn hotel loan portfolio

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."