JV acquires 2 hotels at Westfield Stratford City

A joint venture between Cycas Hotel Partners and Patron Capital is to acquire the long-term leasehold rights for two hotels at the Westfield Stratford City scheme next to the 2012 Olympic stadium in Greater London.

The financial details were not disclosed but the investment volume is believed to be in the region of £50 mln (EUR 60 mln).

When complete, the two hotels will total 350 hotel rooms and suites over 17,500 m². They will be branded as the Holiday Inn London-Stratford City (188 rooms) and the Staybridge Suites London-Stratford City (162 suites).

Cycas Hospitality, a subsidiary of the purchaser, will operate the hotels under franchise agreement with the Intercontinental Hotels Group (IHG). Westfield will build the hotels, which are planned to open ahead of the Olympic Games in 2012. The hotels will be situated at the centre of the Westfield Stratford City shopping centre development, which comprises 176,000-m² of retail and leisure space, 102,000 m² of offices, plus homes and other community facilities.

Cycas Hotel Partners was founded in 2008 by Cycas Capital together with John Wagner. John Wagner is a former employee of Intercontinental Hotels Group (IHG), who was responsible for the development of their extended-stay brand Staybridge Suites in Europe, the Middle East and Africa.

Netherlands-based Cycas Capital is an investment banking boutique specialised in pan-European real estate. Cycas works in close corporation with the Intercontinental Hotels Group (IHG) to build its main extended-stay hotel brand Staybridge Suites, across Europe.

Patron Capital is a investment fund representing about EUR 1.7 bn of capital.

In November last year pension giants APG of the Netherlands and the Canada Pension Plan Investment Board (CPPIB) created a joint venture to acquire 50% of the retail component of Westfield Stratford City. The investment volume came to £871.5 mln (just over EUR 1 bn) and values the retail component at £1.7 bn.