Foncière des Régions also reports it has selected InterContinential Hotels Group, based in Denham, Buckinghamshire, to rebrand and operate 13 of the newly acquired hotels via long-term, triple-net lease deals.

“This landmark transaction represents a major milestone in our remarkable journey with The Principal Hotel Company,” says Cody Bradshaw, managing director and head of European Hotels for Starwood Capital Group, which is headquartered in Miami. “Five years ago, we embarked on an investment strategy aimed at consolidating more than 50 hotels across four different U.K. hotel companies to form a leading platform. With this sale to Foncière des Régions, we will have realized 35 asset disposals in total since our acquisition.”

The deal, which marks the entrance into the United Kingdom for Foncière des Régions, is described by the company as “a major step” in its business development strategy to secure more upmarket real estate and diversify its hotel real estate portfolio.

“This acquisition is an opportunity to duplicate the development strategy already rolled out in France, Germany and Spain, where Foncière des Régions is the preferred partner of active operators in these markets,” says Dominique Ozanne, CEO of Foncière des Régions. “This transaction will help Foncière des Régions cement its leading position on the hotel real estate investment market in Europe.”

The Principal Hotel Co. includes many of the properties Starwood Capital acquired through the purchase of Principal Hayley in 2013, Four Pillars and De Vere in 2014, and the Townhouse Collection in 2015, and the later combination of the four portfolios. Starwood notes that it has recently invested significant capital into the portfolio to reinvigorate the properties and re-launch the Principal and De Vere brands. That initiative included the openings of The Principal Edinburgh Charlotte Square, The Principal York, The Principal Manchester, The Principal Edinburgh George Street and the flagship property, The Principal London, which will complete its restoration this summer, the company states.

In other Starwood Capital Group-related news, German real estate company Vonovia SE has offered approximately $1.1 billion for Swedish real estate concern Victoria Park AB, topping Starwood Capital's previous bid of $1 billion, according to a Bloomberg report.