Sept. 30 (Bloomberg) -- Royal Bank of Scotland Group Plc’s Distressed-property unit and buyout firm Patron Capital Ltd. acquired a chain of 24 British hotels from its administrator for 111 million pounds ($173 million).
Jupiter Hotels Ltd., a venture formed by RBS’s West Register and Patron, acquired the hotels in a “pre-packaged” administration sale with Jarvis Hotels Ltd., managed by insolvency adviser Grant Thornton LLP, according to a statement today.
Jarvis Hotels defaulted on its loans 18 months ago and has since been managed by RBS as it sought to recover 130 million pounds it was owed. West Register and Patron each financed the purchase with 20 million pounds, while 71 million pounds of debt was provided by Jarvis’s original lenders, RBS, HSBC Holdings Plc and Bank of Ireland.
Jupiter will run the hotels under Accor SA’s Mercure hotel chain franchise. Previously they operated under the Ramada hotel brand, according to the statement.
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