Frogmore and C1 Capital have acquired the Hilton London Olympia for £130m and two other hotels as part of a newly formed joint venture to pursue a hotel recovery portfolio strategy.

The hotel will be repositioned and rebranded or extended to maximise potential.

These acquisitions form the second tranche of acquisitions for its fourth value add fund, FREP IV. Previously Frogmore acquired interests in Galliard Homes and three of their London residential developments for FREP IV.

Jo Allen, Chief Executive at Frogmore, commented: “Our strategy is to source hotels which are underperforming or in need of capital expenditure in order to revitalise the offering and improve the hotel performance. We’ve worked alongside Gerard and his colleagues at C1 Capital for nearly 20 years and are delighted to be partnering with them on this initiative.”

Gerard Nolan, Chairman of C1 Capital added: “Our long-term partnership creates the perfect union of Frogmore’s development skills and their ability to gain planning consent with our operational skills to improve the assets. As a team we’ll continue to identify hotel assets that can be repositioned and/or redeveloped.”

“Several aspects attracted us to the Hilton London Olympia,” continued Nolan. “Occupying a prominent location on Kensington High Street, the 405-bedroom hotel is also adjacent to Olympia, which is currently undergoing a £1.3bn redevelopment expected to attract an extra £9m per year to the local economy.”