DLA Piper leads Hilton financing deal

Global law firm DLA Piper has played a crucial advisory role in a significant GBP 275 million financing arrangement for three prominent Hilton hotels, two located in Edinburgh and one in Dublin. Aareal Bank AG, the German lender, acted as the arranger, agent, security agent, and lender for the loan, which will be utilized for debt refinancing and planned renovations across the sites.

The financing will support renovations at the Hilton hotels in Edinburgh—the Curio Collection Caledonian Edinburgh and Hilton Edinburgh Carlton—each set to undergo extensive upgrades, including the expansion of guest rooms to elevate the overall guest experience. This effort aligns with Hilton's goal of enhancing its competitive positioning in the luxury travel sector.

Leading DLA Piper’s team on this transaction was Toby Barker, a partner in the firm’s Finance practice, who coordinated a comprehensive cross-practice team with expertise spanning multiple jurisdictions. The team included real estate, tax, intellectual property, and employment law specialists from DLA Piper’s offices across England, Scotland, Ireland, and Luxembourg. Additionally, the Guernsey aspects of the transaction were managed by Ogier, while Cains handled matters related to the Isle of Man.

Reflecting on the transaction, Barker emphasized its importance to Aareal Bank’s ongoing relationship with sponsor Henderson Park, a prominent investor in high-quality real estate assets. “This transaction is another significant financing for Aareal Bank with sponsor Henderson Park, which we were delighted to advise on,” Barker commented. He added that the funding for these iconic Hilton sites, known for their historic appeal and visits from celebrities and world leaders, would enable much-needed modernization efforts. These enhancements are expected to reinforce the properties’ appeal in competitive international hospitality markets.

The transaction illustrates DLA Piper’s extensive capabilities in managing complex, high-value financing projects involving iconic real estate assets across multiple legal jurisdictions.