Starwood sells London hotel for €207m

JLL has brokered the sale of the Ace Hotel in the Shoreditch district of London for the asking price of £150 mln (€207 mln).

The investment volume reflects a valuation of £580,000 per bedroom for the 258-bedroom hotel, located in an increasing trendy part of the East End in the UK capital.

Adam Wilson, vice president in JLL's Hotels & Hospitality Group, said: 'This transaction sets a new benchmark for hotel pricing in the local area and represents a narrowing of the gap between East and West London pricing. This sales process attracted over £1 bn of equity from all over the globe and is indicative of the insatiable appetite for London hotel real estate.”

Situated on Shoreditch High Street, just north of the London’s financial district within the City of London, the hotel comprises 258 bedrooms, 10 meeting spaces, a lobby bar, a nightclub and the popular Hoi Polloi restaurant.

East London is quickly establishing itself as an international trendsetter, with residential value growth outpacing the rest of London, an office pipeline of 1.4 million m2 (roughly equivalent to the size of Canary Wharf) and some of biggest names in the leisure space.

The hotel stands on the site of the original Shoreditch Empire music hall, which was acquired by Starwood Capital Group in 2012. The property was converted to an Ace Hotel following an extensive refurbishment and subsequently received a 'Best Renovation' award at the 2014 European Hotel Design Awards.

The Ace Hotel Group will continue to manage the hotel on behalf of the new owner, who was not identified.

Established in 1999, Ace Hotel Group is a branded operating company that re-envisions the traditional hotel model, enhancing the value of properties through an innovative and locally inspired approach to design and development.