NEW YORK According to a recent HVS International report, Guy Hands, head of Nomura s Principal Finance Group, is preparing a similar deal to the recent #312 million, or $449.3 million sale and leaseback of 11 Hilton Hotels. If Nomura proves successful in its bid to acquire Le Meridien, the leaseback deal following the acquisition could be worth up to #1 billion, or $1.44 billion and could include a combination of Le Meridien properties and hotels recently acquired from its acquisition of Principal Hotels.
The deal carved between Hilton and the Royal Bank of Scotland provided the former with the full market value of the hotels and formation of revenue based leases. While it is thought that the Grosvenor House in London would be included in the sale and lease back, Nomura may decide to simply sell the hotel, believed to be worth around #300 million, or $432 million. Likely buyers would include Fairmont Hotels and Hyatt Hotels. (4/26/01)