Patron Capital, the pan-European institutional investor focused on property and property-backed investments, has completed the sale of its two flagship hotels at Westfield Stratford City in East London, at the gateway to the Olympic Park.
The deal was brokered by CBRE Hotels EMEA, acting on behalf of the seller.
The hotels, which are branded as a Holiday Inn and a Staybridge Suites hotel, have a total of 350 keys and an area of 186,000 sq ft. InterContinental Hotels Group (IHG) will retain the franchise agreement for both properties and the hotels will continue to be managed by Cycas Hospitality. The sale price, at GBP58m, represents GBP165,000 per key and a forward 2013 cap rate of 6.9 per cent.
Patron Capital, which owns a portfolio of 44 hotels, acquired the two properties in January 2011, prior to the completion of both the Westfield Shopping Centre and the Olympic Park. The hotels opened ahead of schedule in May 2012.
Josh Wyatt, investment director of hospitality at Patron Capital, says: “We are very pleased to complete another successful and complex deal in the hospitality and leisure sector. Acquiring these hotels in early 2011 was Patron’s vote of confidence in an unproven investment zone. With the arrival of Westfield Stratford City and the Olympic Park, followed by the ongoing investment in the area, these hotels are now in an internationally recognised location and at the centre of significant facilities for retail, business and the community. This has been a very successful example of a complex, mixed-use development partnership amongst multiple partners including Westfield, Patron Capital, IHG and Cycas Hospitality; while we anticipated holding this investment for many years and continuing to participate in the successful regeneration of the area, we welcome the buyer's interest in furthering our efforts with the existing partners.”
Owen Pritchard of CBRE Hotels says: “The hotels received unexpected considerable interest from UK and overseas buyers who were attracted by the quality of the product and the location in London’s largest urban regeneration project. We would like to congratulate Patron Capital on the deal.”