Bin Otaiba Investment Group buys Hyatt Regency Birmingham
Sharjah’s Bin Otaiba Investment Group has expanded its hotels portfolio with the purchase of Hyatt Regency Birmingham in the United Kingdom.
The company paid £38.6 million (Dh184m) to New York-listed Hyatt Hotels for the property. It plans to spend another £2.7m to renovate the property over the next three years. The hotel will retain its Hyatt Regency branding through a management agreement. The four-star hotel is close to Centenary Square, in the centre of the West Midlands city.
The 319-room property has three food and beverage outlets.
The sale was part of Hyatt’s asset recycling strategy, according to Steve Haggerty, Hyatt’s global head of capital strategy, franchising and select service.
It involves selling selected hotels but maintaining brand presence through agreements with the new owners, and reinvesting proceeds from sales into new hotels and expansion.
Bin Otaiba, which owns the Hilton Sharjah, the Millennium Hotel Abu Dhabi and Embassy Suites Hotel in Sharjah, is building a five-star hotel on Abu Dhabi’s Saadiyat Island. In the past year, UAE companies have ramped up their presence in the overseas hotel sector.
In February, the Dubai conglomerate Al Habtoor Group acquired the 138-room historic Hotel Imperial in Vienna from New York-listed Starwood Hotels and Resorts for US$78.8m.
Last year, the hypermarkets operator Lulu Group International paid £110m for Great Scotland Yard in London, which it plans to turn into a luxury hotel.
The total investment by Middle East investors in Europe’s hotel sector in 2014 and last year was €4.7 billion (Dh19.36bn), according to the research company CBRE.
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Published: September 28, 2016 04:00 AM