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Starwood targets London extended-stay hotel sector

US private investment firm Starwood Capital Group has followed up the acquisition of two luxury hotels in Scotland with the takeover of four extended-stay hotels and one residential complex in London for £206 million.


The properties are located in two of London’s emerging areas – Tower Bridge/Bermondsey and Earls Court/Kensington.


The hotels, which were constructed in 2008 but are unfinished and partially operational, will comprise nearly 650 rooms upon completion.


They feature apartment-like facilities including full kitchenettes, living and dining rooms, and washer/dryers.


The hotels will also offer more than 25,000 square feet of commercial and office space, including guest amenities such as social lobbies, lounges and gyms.


The residential complex, which will include 60 upscale units upon completion, will offer residents direct access to Bermondsey Street


Senior vice president and head of European hotels Cody Bradshaw said: “We are excited to establish ourselves as a leading player in the extended-stay hotel/serviced apartment market, which we believe is one of the most promising and under-supplied real estate sectors in London today.


“This successful off-market acquisition of a unique portfolio of London real estate reflects Starwood Capital Group’s ability to structure and execute win-win solutions in even the most complex of situations.”


Starwood Capital purchased the portfolio following completion of an administration and company voluntary arrangement process led by Ireland’s National Asset Management Agency.

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