Hilton sale hits £35.7m heights as RBS offload continues

Royal Bank of Scotland has sold Glasgow’s tallest hotel, marking the completion of its Hilton disposal programme.

The bank yesterday said property firm Topland Group had bought the Glasgow City Hilton hotel for £35.7 million in cash. The five-star establishment, which offers more than 300 bedrooms, rises to 20 storeys and dominates the skyline at Anderston.

The move comes just weeks after RBS sold Glasgow’s Hilton Grosvenor hotel for almost £10m as part of the bailed-out bank’s drive to offload “non-core” assets.

The two Glasgow properties were among 11 Hilton sites bought by the bank in 2001 in a £312m sale-and-leaseback deal – and the final pair to be disposed of.

As well as its record height, the City Hilton hotel is known for having hosted several famous guests, including former US President Bill Clinton. In 2000, it was reported that boxer Mike Tyson had booked 150 rooms there for the two weeks leading up to a fight at Hampden.

The Hilton disposals are part of the broader strategic recovery plan being driven by RBS chief executive Stephen Hester. Since 2009, the bank has reduced its “non-core” assets by £145 billion.

Topland said the operating lease to Hilton for the Anderston site, which runs for a further 20 years, produced a turnover-based rent which has “consistently exceeded the base rent”.

Clive Bush, managing director, operations, at Topland, said: “The property offers a long-term secure income stream and is typical of the type of investments which we are seeking.”

The firm, which completed the deal within four days, was advised by law firm Maclay Murray & Spens.

SCOTT REID