Ares Real Estate and EQ Group have announced the acquisition of a portfolio comprising 18 hotels from Land Securities for £400 million, reflecting renewed confidence in the UK’s property and leisure sectors.

The collection of mid-scale and economy hotels, strategically located in central London and other major UK cities, signifies an important expansion for Ares and its partnership with EQ. The deal includes a lease surrender agreement with the current operators, Accorinvest, who will hand over hotel management to Ares.

John Ruane, Partner and Co-Head of Ares European Real Estate, expressed enthusiasm about the acquisition: “The hotels are well located with an attractive weighting to the London market and have seen performance recover strongly since Covid.” He added, “The rationalisation of the ownership and lease structure offer us exciting opportunities to add value over time.”

With £39.2 billion in assets under management, Ares Real Estate continues to strengthen its presence in the UK’s thriving hotel market