KKR and The Baupost Group announced a joint venture to purchase a portfolio of 33 Marriott International hotels across the UK from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Amante Capital, KKR?s vertically integrated European hospitality platform, will serve as managing partner for the joint venture and the properties will continue as premium Marriott branded hotels. The portfolio consists of 33 full-service properties branded as Marriott and Delta by Marriott in London and prime regional cities including Edinburgh, Glasgow, Leeds and Liverpool.

The 6,500 key portfolio benefits from recent high-quality refurbishments and features an attractive mix of amenities catering to business and leisure guests, ranging from conference and event venues to golf and recreation. Amante Capital?s experienced team will manage the portfolio on behalf of the joint venture. Working closely with Marriott International?s UK team, Amante will oversee a program of continued capital investment and provide dedicated services to support the local teams at each property in attracting business and delivering exceptional guest experiences.

To own this collection of premium hotels is a milestone acquisition for Amante Capital and its investment partners. KKR has been a long-term investor in UK real estate, having deployed over USD 3.5 billion of capital since 2016 across hospitality, residential, student housing and logistics properties. KKR is making the investment primarily through its value-add and opportunistic European real estate strategy.

DLA Piper, Ropes & Gray and Simpson Thacher Bartlett served as legal advisors to the KKR and Baupost joint venture. KKR Capital Markets and Eastdil Secured arranged financing for the transaction. Hamilton Pyramid served as asset manager, Eastdil Secured as advisor and Burges Salmon as legal counsel to ADIA.