Starwood Capital Group has acquired a portfolio of four extended-stay hotels and a residential complex in London for £206 mln (€270 mln).

Starwood Capital Group has acquired a portfolio of four extended-stay hotels and a residential complex in London for £206 mln (€270 mln).

The hotels, branded as apart-hotels, are located in what Starwood describes as two of London’s top emerging submarkets: Tower Bridge/Bermondsey and Earls Court/Kensington. The residential complex is in Bermondsey.

The hotels, which were constructed in 2008 but are currently unfinished and only partially operational, will comprise nearly 650 units upon completion. The units feature apartment-like amenities including full kitchenettes, living and dining rooms, and washer/dryers. In addition, the hotels will offer over 2,300 m2 of commercial and office space, including many new guest amenities such as social lobbies, lounges and gyms.

The residential complex will include more than 60 upscale units upon completion, along with a number of underground parking spaces and over 1,400 m2 of commercial space.

Starwood Capital Group purchased the portfolio following completion of an administration and company voluntary arrangement process led by Ireland’s National Asset Management Agency (NAMA) and New York-headquartered valuation and corporate finance adviser, Duff & Phelps.

'We are excited to establish ourselves as a leading player in the extended-stay hotel/serviced apartment market, which we believe is one of the most promising and under-supplied real estate sectors in London today,' said Cody Bradshaw, head of European hotels at Starwood Capital Group.

Law firm Ashurst advised the vendor.