Cerberus Capital Management has joined forces with hospitality group Highgate to acquire the Dorsett City London hotel from subsidiaries of Hong Kong-listed Far East Consortium International Limited for a price believed to be around £115 mln (€134 mln).
Located in the heart of London’s financial district, Dorsett City London is a four star hotel offering 267 rooms on 13 storeys.
The transaction is the latest partnership between Cerberus and Highgate, which have recently jointly bought six hospitality portfolios from Colony Capital.
‘We are excited to add Dorsett City London to our growing portfolio of high-quality U.K. and European hospitality assets,’ said Lee Millstein, president of Cerberus Global Investments and global head of Real Estate for Cerberus. ‘With Cerberus and Highgate’s combined financial and operational expertise, we believe we will be able to elevate the guest experience and position the Hotel for success as the market recovers. We see significant opportunities in the U.K. and European hospitality sector that play to our strengths and disciplined approach to long-term investing.’
Mehdi Khimji, co-founder and managing principal of Highgate, commented, ‘Highgate is excited to collaborate with Cerberus to acquire this prominent London property that is poised to meet the steadily rising demand for premier hospitality experiences for business and leisure. This acquisition is emblematic of Highgate’s strategy to expand further into the U.K. and European markets by acquiring and managing quality assets.’
