Starwood acquires 10 Radisson Blu Edwardian hotels in London

American private equity firm Starwood Capital Group has acquired all 10 Radisson Blu Edwardian hotels in London, UK, from privately held hotel group Edwardian Hotels London. The sale comprised the freehold of the 10 properties, totalling 2,053 rooms, and closed for a total consideration of approximately £800 million (£390,000 per room). Most of the assets are located in prime central-London locations across the Marylebone, Soho and Kensington districts. The sale included the Hampshire (127 rooms), Mercer Street (137 rooms), Bloomsbury (175 rooms), Berkshire (149 rooms), Sussex (101 rooms), Kenilworth (186 rooms), Grafton (330 rooms), Vanderbilt (215 rooms), New Providence Wharf (169 rooms) and Heathrow (464 rooms) hotels. Edwardian will continue to operate the portfolio on a transactional basis, and Starwood is expected to invest sizable capital expenditure into the properties. Edwardian’s three most upmarket hotels were not part of the transaction, being The May Fair and The Londoner in London, and the Edwardian in Manchester.

Travelodge acquires 66 Travelodge-branded hotels in the UK from LXi REIT

British hotel owner-operator Travelodge has acquired 66 Travelodge properties throughout the UK from its largest landlord, London Stock Exchange-listed LXi REIT, for £210 million. The portfolio comprises properties in London, Birmingham, Bath, Leeds, Liverpool and roadside locations. Travelodge is one of the UK’s largest economy brands with a footprint of some 600 hotels across the UK, Ireland and Spain. The aim of the sale for LXi was to pay down debt, reducing group LTV to 34%, and reducing the proportion of rent received from Travelodge to 11% of the REIT’s total rental income. LXi will still remain Travelodge’s largest landlord following the transaction, with 69 hotels remaining. The acquisition has been financed through a shareholder investment from Golden Tree AM, owner of Travelodge, third-party financing and £35 million in cash from Travelodge. The group is expected to upgrade half of its room portfolio by the end of 2024. Travelodge reported record quarterly earnings in late 2023, with revenue up 16.7% and earnings up 22.4%.

Zeus acquires two hotels in Milan and Thessaloniki from Prodea

Greek group Zeus International Hotels & Resorts has acquired the four-star, 207-room Dolce Milan Malpensa near Milan Malpensa Airport, Italy, and the five-star, 74-room Lazart Hotel Trademark Collection by Wyndham in Greece’s second largest city, Thessaloniki, from Greek real estate investment company Prodea Investments, for an undisclosed price. The transaction also included an office building in Athens. The Dolce Milan is located about 7 kms from the Milan Malpensa Airport, northern Italy’s largest international airport, whilst the Lazart hotel is located in the centre of Thessaloniki on the north coast of Greece. The latter was acquired for €7 million (€95,000 per room) by Prodea in 2018. This acquisition increases Zeus’ owned hotel portfolio to nine properties, with another 11 hotels under management.

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