Hotel news and transactions from around the European region: Cadogan Estates acquires The Draycott Hotel in London, Dream Hotel Group and more...

Hyatt to acquire Dream Hotel Group
Hyatt Hotels Corporation has announced an agreement to acquire Dream Hotel Group’s lifestyle hotel brand and management platform, including the Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands. The USD 125 million acquisition will add a portfolio of 12 managed or franchised lifestyle hotels worldwide (over 1,700 rooms), with Hyatt set to generate USD 12 million a year from management fees associated with the base purchase price. Hyatt also has the option to sign long-term management agreements for 24 further hotels opening in the future for USD 175 million over the next six years, expected to lead to total stabilised management fees up to USD 27 million a year. Founder and chairman of Dream Hotels, Sant Singh Chatwal, will remain owner of four open and two future Dream Hotels that are expected to join the Hyatt portfolio.

Cadogan Estates acquires The Draycott Hotel in London
Cadogan Estates has acquired The Draycott Hotel from Draycott Holdings Limited for an undisclosed sum. Built in 1890, the luxury hotel includes 35 bedrooms and suites and a private garden and square. The Cadogan family, one of the wealthiest in England, are the largest land owners in Chelsea and Knightsbridge in London. The Draycott Hotel is comprised of three adjoining Victorian townhouses and overlooks Cadogan Gardens in the heart of Chelsea. The property is set to reopen as The Chelsea Townhouse next year following a multimillion pound renovation and will be operated by Iconic Luxury Hotels, whom will assume the management of the property from the Mantis Collection. Iconic Luxury Hotels was founded in 2016 and is part of L+R Hotels. The Draycott will be added to Cadogan’s existing hotel portfolio of The Cadogan Hotel (a Belmond Hotel), The Beaverbrook Town House and 11 Cadogan Gardens and Apartments (also operated by Iconic Luxury Hotels).

Peakside Capital acquires the Grandhotel Hessischer Hof hotel in Frankfurt from Prinz von Hessen
European investment manager Peakside Capital Advisors has acquired the luxury 121-room Grandhotel Hessischer Hof hotel and adjacent office building in Frankfurt, Germany, on behalf of their Peakside Real Estate Fund IV (PREF IV), from Prinz von Hessen, for an undisclosed price. The hotel is located next to the Frankfurt Trade Fair and Festhalle Messe, a concert and event arena. Because of Covid, the property shut its doors at the end of 2020. The seller, Prinz von Hessen, an umbrella company that includes all the tourism and F&B sub-brands of the Hessian House Foundation and the Cultural Foundation of the House of Hessen, conducted major refurbishments over the years prior to closure. The hotel is set to welcome a new operator and is expected to retain Jimmy’s Bar, a nightlife icon within the hotel.

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