The owners of the Hilton hotels in London and Birmingham have invested £35.3m adding the hotel group’s Cardiff property to their portfolio.

Property companies Tonstate Group, Property and Building Corp and Destiny, which bought the London and Birmingham Hilton Metropoles for £417m in late 2006, have joined forces again to take on the property in the Welsh capital.

The hotel, which is expected to have an operating profit of £3.5m in 2007, has 200 rooms and is managed by the Hilton hotel chain on a 20-year contract.

Under the terms of the deal, Tonstate will take on 60% of Hilton Cardiff, with the other two Israeli-based firms sharing 20% each.

The group will finance the purchase through a loan for £29m, and £6.3m in shareholders equity.

The move comes a week after Hilton Hotels Corporation was taken over by private equity firm Blackstone in a deal worth nearly £10b.

£10b Hilton deal will not be the last >>

By Daniel Thomas

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