RREEF is acquiring regional hotel company Four Pillars Hotel Group, the owner and operator of five assets in the UK.
The three and four star hotels with conference, banqueting and leisure facilities are located in Oxfordshire and Gloucestershire, including the recently opened 220 bedroom conference and spa hotel in the Cotswold Water Park set in 240 hectares.
Under the terms of the agreement, Four Pillars Hotels founding director, Brian Murtagh, and existing chief executive officer, Charles Holme, will retain an equity position in the group, according to a statement. In addition, a joint venture will be established between RREEF and the four original founding shareholders to identify and build further sites which will be operated under the Four Pillars banner.
The joint venture has already been awarded planning permission to develop its first new hotel in Harwell, Oxfordshire and has a number of other sites in the pipeline.
Alistair Dixon, chief executive officer of real estate opportunity funds at RREEF, said: “We are delighted to be making our first steps into this segment of the UK hospitality market sector through an investment that will take advantage of the UK’s steady economic growth.”
As part of its drive into alternative UK property, RREEF acquired a 58 acre caravan park in Essex in April as it seeks to exploit the untapped sector.