China's Cindat is said to join $660 million QHotels purchase
China’s Cindat Capital Management is joining an acquisition of QHotels Group valuing the U.K. hospitality company at more than 500 million pounds ($660 million), people with knowledge of the matter said.
Cindat, which focuses on overseas property deals, is negotiating a joint purchase of QHotels with U.K. investment firm Aprirose, according to the people, who asked not to be identified because the information is private. Aprirose, which was previously pursuing the acquisition on its own, now plans to take a 50 percent stake in QHotels while Beijing-based Cindat would hold the remainder, the people said.
The suitors aim to reach an agreement with QHotels’s owners, Bain Capital Credit and Canyon Partners, in the next few weeks, one of the people said. QHotels runs four-star hotels catering to golf weekends and spa retreats, as well as accommodations for weddings and conferences.
QHotels, founded in 2003, has a portfolio of 26 hotel properties across the U.K., according to its website. Bain Capital Credit and Canyon Partners invested in QHotels in 2014, when they bought a portfolio of QHotels loans during Irish Bank Resolution Corp.’s liquidation proceedings.
Any deal would add to the USD 4.2 billion in hotel acquisitions by Chinese buyers this year, more than double the volume during the same period in 2016, data compiled by Bloomberg show.
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