PROPERTY investment firm Castleforge Partners has announced its second hotel purchase in the last month with the acquisition of the Hilton Hotel in Cardiff, in a sales process run by CBRE.
Castleforge purchased the 197-bedroom hotel, located in the heart of the Welsh capital, from a private owner who had owned the hotel for fourteen years. Opened in 1999, the seven-floor Hilton Cardiff has views over Cardiff Castle and the city's Edwardian civic centre.
The deal quickly follows Castleforge’s first investment in the hospitality sector in May when it acquired the Best Western Plus Bruntsfield Hotel in Edinburgh.
Castleforge has invested approximately £1billion since its inception in 2010, gaining a strong reputation for value-add investment in office and residential real estate across the UK and Europe. In 2020, Castleforge announced its intentions to enter the hospitality sector when it hired Matt Lederer from Marriott International to become their Hotel Acquisitions Director.
Commenting on the Hilton Cardiff purchase, Matt Lederer, Hotel Acquisitions Director at Castleforge Partners said: “Our hotel strategy at Castleforge is to invest only in best in class value add opportunities across the UK and European markets. Our decision to invest in the city of Cardiff and the Hilton Hotel are emblematic of this approach.”
Brandon Hollihan, Founding Partner of Castleforge Partners said “We are thrilled to be announcing our move into the hospitality sector with the landmark purchases of the Hilton Cardiff and the Best Western Plus Bruntsfield Hotel in Edinburgh. The last year has been tough on the hospitality industry, but we firmly believe that these top-tier hotels and destinations are particularly well primed for a big bounce back in the months and years to come.”
Global real estate advisor, CBRE, advised the private owner on the sale of the hotel to Castleforge.
Julia Wyss at CBRE commented: “The hotel benefits from both its central location and its association with Hilton Worldwide. We received strong demand resulting in a competitive bidding process, further signalling investors’ continued confidence in the recovery of the UK hotel market.”
About Castleforge Partners
Castleforge Partners is a private equity real estate investment firm based in London, UK that has invested approximately £1 billion of asset value throughout the UK and Europe. It was founded in 2010 by Brandon Hollihan and Michael Kovacs. Castleforge Partners Limited is authorised and regulated by the Financial Conduct Authority.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.