Starwood Capital takes down 10-hotel Edwardian portfolio

LONDON – Starwood Capital Group has acquired a portfolio of 10 hotels located in the U.K. from Edwardian Group for a reported for £800 million ($1 billion) in an off-market transaction.

The portfolio comprises 10 hotels with 2,053 rooms – all currently trading under the Radisson Blu Edwardian brand name. Edwardian Group will continue to own and operate The Londoner and its two Radisson Collection hotels, The May Fair and The Edwardian Manchester, following closing of the transaction.

Alongside the acquisition, Starwood Capital and Edwardian Group intend to collaborate on future opportunities together. As part of this relationship, Edwardian Group will continue to operate the portfolio on a transitional basis while Starwood Capital plans its future investment into the hotels.

The acquisition adds to Starwood Capital's existing portfolio of European hotel investments, which following the transaction will comprise 47 hotels and approximately 10,000 rooms across Europe.

"We are delighted to have had the opportunity to acquire this one-of-a-kind portfolio of Central London freehold hotels. London is one of the world's most sought-after hotel markets, and this portfolio enables to us gain exposure on a unique scale to London,” said Starwood Capital Managing Director Tim Abram. “We plan to invest significant capex during our ownership into further enhancing the hotels."

Inderneel Singh, CEO of Edwardian Group, said the deal represents “an opportunity to refocus the group and position it for the next chapter of growth."