London hotels of any shape or size are hot property at the moment, so it’s hardly surprising that many firms are keen to invest in them. This month the investment firm Starwood Capital Group (no longer associated with Starwood Hotels & Resorts) snapped up not one but four upcoming London hotels.
The group announced on January 14th that it had acquired a portfolio of buildings in London for £206 million, understood to comprise four ‘extended-stay’ hotels and a residential complex. The exact hotel names are at present unclear, but reports state that they are located in Tower Bridge/Bermondsey and Earl’s Court/Kensington.
It is also understood that the hotels were originally built in 2008 but are unfinished and only partly operational. When complete they will provide approximately 650 rooms, a substantial investment for Starwood Capital.
Starwood Capital was the original creator of the Starwood Hotels and Resorts group, which owns the W Hotel Leicester Square among many others.
But it parted company with the hotel chain at the turn of the millennium and has since invested in other forms of property, as well as energy and land.
Travel Daily News quoted Cody Bradshaw, the group’s Senior Vice President and Head of European hotels: “We are excited to establish ourselves as a leading player in the extended stay/serviced apartment market, which we believe is one of the most promising and under-supplied real estate sectors in London today.”
Does this imply that the group will invest further in this sector of London’s hotel market? That much is unknown, but it is certainly the case that the extended-stay concept is an increasingly popular one in the capital, and is likely to experience further growth in the years ahead.
Photo credits: Starwood Capital Group.