The Hilton Hotel in the centre of Cardiff has been acquired by a private real estate investor.
Castleforge Partners purchased the 197-bedroom hotel, located in the heart of the capital, from a private owner who had owned the hotel for 14 years. The value of the deal was undisclosed.
In 2007 Tonstate Hotels bought the hotel with a funding package from Bank of Scotland Corporate in a deal believed to be in the region of £30m.
Opened in 1999, the seven-floor, four-star Hilton Cardiff has views over Cardiff Castle and the city’s Edwardian civic centre.
The Hilton deal was Castleforge’s second hotel purchase in the past month, following its first investment in the hospitality sector in May when it acquired the Best Western Plus Bruntsfield Hotel in Edinburgh.
Castleforge has invested approximately £1bn 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 2018 Castleforge invested in the 225,000 sq ft Brunel House in Cardiff city centre, spening more than £1m on a makeover of the property. This included a new external foyer and a two-storey glass atrium to mirror the extensive glazing of the building.
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.
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On the Hilton Cardiff purchase, Mr Lederer 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 added: “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.
Global real estate advisor, CBRE, advised the private owner on the sale of the hotel to Castleforge.