aAIM Plans £350million Hotel Sales

A PROPERTY investment firm has unveiled plans to offload six prominent UK hotels in a package worth approximately £350million.

aAIM Group - which counts X-Factor guru Simon Cowell and Manchester united manager Sir Alex Ferguson among its investors - is hoping to sell at least half of its equity in six hotels operated by Principal Hayley Group, the hotel and conference centre operator.

The hotels, which include the Hotel Russell in London and The George in Edinburgh, were acquired by aAIM for about £275 million at the end of 2006 under a sale and leaseback deal.

The investment firm said its preference was to sell a 50 per cent interest in the properties, although it added it has received interest from parties looking to acquire individual hotels as well as those looking at the full package.

aAIM insists that there is no risk of Principle being ousted as operator of the hotels.

According to The Times, a source close to Principal said: “These assets are fundamental to the group and there is no way we would consider disposing of them.

Our business plan is predicated on acquisitions and disposals are not on the agenda.”

The decision to canvass interest in the six properties comes a few weeks since the collapse of the planned acquisition by aAIM of Kew Green Hotels and 18 former Queens Moat Houses (QMH) properties in separate transactions totalling about £600 million.

The collapse of both deals was blamed on the credit crunch, but industry experts believe the QMH deal could yet be resurrected.

The company is no newcomer to the hotel sector. In October 2006 it joined forces with property magnate Robert Tchenguiz to buy Menzies Hotels for £180 million.

It later sold out to Mr Tchenguiz, giving him outright control of the business.