Dallas-based private equity giant Lone Star Funds is continuing its recent strategy of offloading European assets, following last month’s news that it was seeking to dispose of a portfolio of 42 hotels, comprising six Hilton and 36 Jurys Inn-branded properties, for around £1 billion ($1.29 billion; €1.15 billion).
Lone Star has made just one purchase in Europe since it acquired the Jurys Inn and Hilton portfolio in 2015, according to Real Capital Analytics. That was Quercus Healthcare Property Partnership – involving a portfolio of 75 UK healthcare properties – in October 2016, for around £250 million from Aviva Investors.
While a sale is thought to be Lone Star’s preferred option, it has also considered an initial public offering. The firm is understood to have approached Credit Suisse and Eastdil Secured to advise on a sale.