American hedge fund business takes stake in Arora Hotels
US hedge fund Davidson Kempner has acquired a loan portfolio of £200m with independent group Arora Hotels.
It is believed the loans were bought at a 30% discount from the Allied Irish Bank ahead of a refinancing of the company, according to The Sunday Times.
Surinder Arora, the group's founder, is said to have bank loans of £500m. He launched the company in 1999 and has since specialised in airport hotels and supplying rooms for cabin crew.
Arora Hotels has six properties, with more than 2,200 bedrooms. Two of the hotels - Sofitel London Heathrow and Sofitel London Gatwick - are operated under a franchise agreement with Accor.
The group is currently developing the four-bedroom, 212-bedroom hotel Royal Ascot hotel, which it will operate opposite the racecourse.
Caterer and Hotelkeeper 100: Surinder Arora, Arora Hotels >>
