Patron and RBS exit UK hotels chain for £160m

Patron and RBS originally put in £40 million of equity with debt financing of £71 million for the hotels back in 2011.

Patron Capital, the London-based private equity real estate firm, and the UK part-nationalized bank Royal Bank of Scotland (RBS), have sold Jupiter Hotels for £160 million (€216 million; $246 million).

Patron and RBS originally acquired the hotels from the administrator to hotels group Jarvis Hotels back in 2011 in a 50:50 joint venture.

The joint venture put in £40 million of equity with debt financing of £71 million provided by RBS, HSBC and Bank of Ireland, which were the original lenders to the collapsed group.

The purchaser is a joint venture between Singha Estate, which is the real estate investment and development arm of the Boon Rawd Brewery Company in Thailand, and FICO Holding, a subsidiary of Thailand-based conglomerate FICO Group.

Jupiter Hotels owns and manages 26 UK hotels operating under the Mercure brand, with a total of 2,883 rooms. Most of the properties are owned freehold. It also manages a further six hotels.

Earlier this year, Patron made another significant exit when it sold UK forecourt business, Motor Fuel Group (MFG), for approximately £500 million to New York-based private equity firm Clayton, Dubilier & Rice.

Patron originally acquired MFG back in December 2011 in a joint venture with oil industry veteran Alasdair Locke and members of a new management team. Patron made the investment on behalf of Patron Capital IV, a vehicle which attracted €780 million of commitments from limited partners as well as €320 million of co-investment capital.

CBRE was the agent for the Jupiter Hotels sale.