Joint venture partners Starboard Hotels and LaSalle Investment Management have acquired seven UK hotels from Ares Real Estate Funds and EQ Group for an undisclosed price.
The portfolio, which provides 913 bedrooms, comprises: ibis Birmingham New Street, Novotel Birmingham Centre, Novotel Sheffield Centre, ibis Luton Airport, ibis Southampton Centre, Novotel Southampton and ibis London Barking.
The hotels will be managed by Starboard under existing Accor franchise agreements.
Frazer Callingham, managing director of Starboard Hotels, said: “This is a first private equity joint venture transaction for us and we are very excited to be working in partnership with LaSalle to bring this established portfolio into our hotel family. We expect the portfolio to bring operational efficiencies across our estate, and it is exciting to be a part of both new cities and brands with great potential to grow and improve.”
Leif Skogland, vice-president, value-add investments, Europe at LaSalle Investment Management, added: “We are delighted to be partnering with Starboard on this exciting opportunity; we see great potential in this portfolio and look forward to realising the business plan. We believe further opportunities will arise across the UK for us to expand our joint venture with Starboard.”
Hussein Sunderji, managing director and partner at EQ Group, said: “EQ Hotels are delighted to complete the sale of the portfolio to Starboard and LaSalle, and look forward to seeing these well-located regional hotels’ continued growth under their ownership. This sale marks our final exit from the 18-asset UK portfolio acquired with Ares in 2024, completing a 27-month deal cycle that delivered significant value creation through both nimble deal execution and best-in-class operational management. ”
Kerr Young, head of UK national hotels transactions, capital markets at JLL, which alongside Christie & Co represented Ares and EQ on the deal, added: “Completing this transaction highlights the underlying liquidity in the UK hospitality market and signals a buoyant outlook for regional portfolio activity moving forward. We wish the new owners every success as they take these assets into their next phase of growth.”
Jeremy Jones, head of brokerage – hotels at Christie & Co, said: “We are delighted to have assisted in the sale of these hotels, strategically located in key markets including London Luton Airport and London Barking. The transaction highlights the continued demand for quality hotel assets in established UK locations.”
