Marriott Intl acquires Berners Hotel in London

Marriott International last week announced the acquisition of the historic Berners Hotel in London that will be renovated over the next 18-24 months to become The London 'Edition'. The transaction comes weeks after the grand opening of the first Edition hotel in Hawaii.

The new boutique Edition brand was conceived by Ian Schrager in partnership with Marriott International. It combines the personal, intimate, individualized and unique lodging experience that Ian Schrager is known for, with the global reach, operational expertise and scale of Marriott.

Marriott acquired the Berners hotel from the previous owner which is in administration. Jones Lang LaSalle Hotels marketed the hotel on instruction of the property's administrators.

Michelle Webb, senior vice president for Jones Lang LaSalle Hotels, said: 'This is an excellent result, achieved within 10 weeks of the commencement of marketing. The Berners is a rare freehold, trophy hotel development opportunity with vacant possession. We received unprecedented interest with almost 40 bids, representing over £1.5 bn of equity. Nearly 70% of bids were from overseas parties, demonstrating the continued appeal of London to international investors, who have been frustrated by a lack of quality hotel opportunities.'

The hotel has been closed since 2006 and was placed in administration in August 2010. In partnership with Schrager, Marriott plans to completely redesign and redevelop the property before its grand opening as a new Edition hotel.

Earlier this year, Marriott also acquired the Seville Hotel in Miami Beach to redesign and redevelop into an Edition hotel. As part of Marriott's longstanding business strategy, the company expects to manage the hotels under long-term agreements after selling them over time to third-party owners. Marriott expects to open the brand’s second property, The Istanbul EDITION, in the first half of 2011.

The historic Berners Hotel dates back to 1835. The property originally was comprised of five residential houses and was ultimately converted into a hotel. The layout includes a basement, ground and seven upper floors, and incorporates original architectural features, such as ornate ceilings and a marble-clad reception area.