Jones Lang LaSalle Hotels is pleased to announce the sale of the 291-room St Ermins Hotel London on behalf of Strategic Hotel Capital for £56.9million. The hotel was acquired by Italy`s Jolly Hotels and represents this company`s first foray into the UK market.
“The sale represents the largest transaction in the London market so far this year” stated Nick Marsh, Executive Vice President of Investment Sales at Jones Lang LaSalle Hotels. He added that “2000 has generally seen owners holding onto their assets and enjoying strong income growth, however, Strategic Hotel Capital saw an exit opportunity to realise the hotel`s growth in capital value since their acquisition of the property in 1998”.
“This was an excellent opportunity to acquire a well established central London hotel with potential for re-branding, re-positioning and increased revenue generation through refurbishment,” said Robert Seabrook, Senior Vice President of Jones Lang LaSalle Hotels, London. “Through a controlled marketing program, Jones Lang LaSalle Hotels was able to secure additional value for the master planned development program that had been put in place by Strategic” added Mr Seabrook. Other selling features included the recently refurbished bedrooms, the secure income flow from the commerical element of the property and the strength of the London hotel market.
The hotel attracted widespread interest from such spheres as owner/operators, private individuals and investment opportunity funds, demonstrating the strength of investment demand for quality product in the London market. The strength of buyer interest was again evidenced by the smooth sales process, which was less than five weeks from the agreement of terms to the exchange of contracts.