Patron Capital has completed the sale of two hotels at Westfield Stratford City, E20, for £58m to an overseas investor.
The sale comes just two years after Patron bought the Holiday Inn and Staybridge Suites hotel, during which time the area has been transformed.
The hotels opened ahead of schedule in May 2012, shortly after the opening of Westfield’s shopping centre and ahead of the neighbouring Olympic Park.
InterContinental Hotels Group will retain the franchise agreement for both properties and the hotels will continue to be managed by Cycas Hospitality.
They have a combined 350 rooms over 186,000 sq ft, representing £165,000 per room and a forward 2013 cap rate of 6.9%.
Patron Capital investment director of hospitality Josh Wyatt said: “We are very pleased to complete another successful and complex deal in the hospitality and leisure sector.
“Acquiring these hotels in early 2011 was Patron’s vote of confidence in an unproven investment zone. With the arrival of Westfield Stratford City and the Olympic Park, followed by the ongoing investment in the area, these hotels are now in an internationally recognised location and at the centre of significant facilities for retail, business and the community.
“This has been a very successful example of a complex, mixed-use development partnership amongst multiple partners including Westfield, Patron Capital, IHG and Cycas Hospitality; while we anticipated holding this investment for many years and continuing to participate in the successful regeneration of the area, we welcome the buyer’s interest in furthering our efforts with the existing partners.”
CBRE Hotels advised Patron Capital on the deal.
jack.sidders@estatesgazette.com
