Slaughters and Jones Day lead as real investor seals £500m deal for two Hilton hotels

Slaughter and May and Jones Day are advising on property investor Henderson Park’s £500m purchase of the London and Birmingham Hilton Metropole hotels from the Tonstate property group.

The acquisition marks the first investment into the UK hotel industry by Henderson, a European real estate investment platform founded by former Goldman Sachs executive Nick Weber.

It follows Henderson’s purchase of Le Meriden Etoile, the largest hotel in Paris, for €365m (£328m) last year.

Jones Day acted for Henderson with a team led by M&A partner Anna Cartwright, real estate partner David Smith and tax partner Blaise Marin-Curtoud.

Tonstate was advised by Slaughters, which fielded a team lead by corporate partner Murray Cox, real estate partner John Nevin, finance partner Stephen Powell and tax partner Gareth Miles.

The Hilton Birmingham Metropole is the UK’s largest hotel outside of London, while the Hilton London Metropole is the second largest hotel by room count in the capital.

Last year, Slaughters served as international counsel to Chinese conglomerate HNA Group on its $6.5bn (£5.3bn) investment in Hilton Worldwide Holdings – a move that handed it a 25% stake in the hotel empire. Weil Gotshal & Manges also advised HNA, which purchased the stake from the Blackstone Group, which now owns approximately 21% of the company.

Simpson Thacher & Bartlett took the lead role for Blackstone on that deal, as well as Blackstone’s $26bn takeover of Hilton in 2007 and its 2013 initial public offering.