Michels seeks funds for European investment?

David Michels, former chief executive of the Hilton Group, is understood to be seeking to raise £1b to invest in European hotels.

Michels is believed to have approached a number of potential investors with a view to setting up a European counterpart to US real estate funds such as Starwood Capital and Strategic Hotel Investments.

It has been reported that Michels has hired Citigroup as his financial adviser and spoken to Brian Wallace, former finance director at the Hilton Group, about a potential partnership.

Michels, who recently oversaw the £3.3b sale of Hilton International back to Hilton Hotel Corporation of the USA, told Caterer it was too early to comment on his plans.

Both Michels and Wallace have been retained as consultants for three years at Hilton Hotel Corporation.