It's doubtful that the fund is enthusiastic about every property in the portfolio, but it's likely getting a good deal as few other investors could easily relieve a bank of 42 hotels without breaking a sweat.
The Abu Dhabi Investment Authority is close to buying 42 hotels managed by Marriott International Inc. and controlled by the Royal Bank of Scotland, according to a person familiar with the situation.
The sovereign wealth fund, also known as ADIA, has been a preferred bidder since last summer and the sale includes hotels in London and Edinburgh, the person said, asking not to be identified because the deal hasn’t been made public.
ADIA may pay 640 million pounds ($993.2 million) for the hotels which RBS acquired after the borrowers defaulted on a loan in 2011, the Times of London reported Feb. 16, without saying how it obtained the information.
Erik Portanger, an ADIA spokesman, and Adam Holden, spokesman for administrators Ernst & Young, declined to comment. Nobody was immediately available to comment at RBS.
With assistance from Neil Callanan in London. Editors: Dale Crofts, Digby Lidstone. To contact the reporter on this story: Mahmoud Kassem in Abu Dhabi at firstname.lastname@example.org. To contact the editor responsible for this story: Dale Crofts at email@example.com.
Subscribe to Skift Pro
Subscribe to Skift Pro to get unlimited access to stories like these ($30/month)Subscribe Now