Private equity firm Starwood Capital Group has acquired a portfolio of 10 hotels in London from Edwardian Group, including properties in the West End.
The freehold portfolio is understood to have transacted at about £800m. It comprises 2,053 rooms, with the hotels trading under the Radisson Blu Edwardian brand.
The hotels are mainly in West End locations including Leicester Square, WC2; Tottenham Court Road, W1; and Mercer Street, WC2.
Edwardian Group will continue to own and operate The Londoner and its two Radisson Collection hotels, The May Fair and The Edwardian Manchester, after closing the deal.
Starwood Capital and Edwardian Group jointly said that they intend to collaborate on future opportunities together. As part of that relationship, Edwardian Group will continue to operate the portfolio on a transitional basis as Starwood Capital plans its future investment into the hotels.
The acquisition adds to Starwood Capital’s existing portfolio of European hotel investments, which will comprise 47 hotels with some 10,000 rooms across Europe after the deal completes.
Tim Abram, managing director at Starwood Capital, said: “London is one of the world’s most sought-after hotel markets, and this portfolio enables to us gain exposure on a unique scale to London.
“We plan to invest significant capex during our ownership into further enhancing the hotels.”
Edwardian Group chief executive Inderneel Singh said: “Following the successful development of The Londoner and a period of strong trading across the portfolio, the sale represents an opportunity to refocus the group and position it for the next chapter of growth.”
JLL and law firm Baker McKenzie advised Edwardian Group on the sale. Law firm Paul Hastings acted for Starwood Capital.
List of hotels in the portfolio:
- Radisson Blu Edwardian Hampshire Hotel
- Radisson Blu Edwardian Mercer Street Hotel
- Radisson Blu Edwardian Bloomsbury Street Hotel
- Radisson Blu Edwardian Berkshire Hotel
- Radisson Blu Edwardian Kenilworth Hotel
- Radisson Blu Edwardian Grafton Hotel
- Radisson Blu Edwardian Vanderbilt Hotel
- Radisson Blu Edwardian New Providence Wharf Hotel
- Radisson Blu Edwardian Heathrow Hotel & Conference Centre
- Radisson Blu Edwardian Sussex Hotel
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