£230 million sale of three Marriott extended-stay hotels in Central London closes

LONDON, Thursday 29, 2024 –  JLL Hotels & Hospitality Group announced today the £230 million sale of three centrally located extended stay hotels in London: Residence Inn by Marriott London Kensington, Residence Inn by Marriott London Bridge and Residence Inn by Marriott Tower Bridge.

JLL represented the seller, Starwood Capital, while Pandox acquired the asset.

The 315-key Residence Inn by Marriott London Kensington opened in 2018, offering a modern and stylish property that features spacious and comfortable apartments in the heart of London. Guests can enjoy fully equipped kitchens, separate living areas, a 24-hour gym, an on-site restaurant, a convenience store and laundry facilities. The hotel’s convenient location at 181-183 Warwick Road in Kensington, London provides easy access to key leisure attractions, as well as being within 30 minutes of Heathrow Airport.

Located at 201-211 Long Lane in Bermondsey, London, the Residence Inn by Marriott London Bridge was the first Residence Inn by Marriott in London. With 87 keys, this hotel, operational since 2017, offers amenities such as a 24/7 fitness centre, guest laundry, guest storage and a 122-square-meter office space.

The Residence Inn by Marriott Tower Bridge, situated at 190 Bermondsey Street in Bermondsey, London, was converted into a Residence Inn by Marriott in December 2019. This 101-key property features a 24/7 fitness centre, an onsite restaurant and a 214-square-meter office unit. Both the London Bridge and Tower Bridge hotels enjoy exceptional visibility in prime micro-locations within Central London, surrounded by long-term demand generators, major leisure attractions and have easy access to Gatwick Airport and London City Airport.

All three hotels are operated by Axiom Hospitality under a management agreement.

The JLL Hotels & Hospitality Group was led by Head of EMEA Hotels Will Duffey, Executive Vice Presidents Marc Nelson and Jurrian Dompeling and Senior Analyst Gregoire Delcourt.

Duffey commented, “This sale showcases the continued investor interest in the London hotel market and underscores the resilience and promising future of the hospitality industry in the post-pandemic recovery phase.”

JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling $83 billion worldwide. The group’s 370-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.

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Starwood Capital Group is a private investment firm with a core focus on global real estate. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have over 5,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $75 billion of capital, and currently has approximately $115 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $91 billion of capital since inception and manages a portfolio of $27 billion across debt and equity investments. Over the past 31 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.

Pandox owns, develops, and leases hotel properties to skilled hotel operators under long-term, turnover-based leases with minimum guaranteed levels. Since our inception in 1995, we have grown into one of the largest hotel property owners in Europe. Our portfolio consists of 161 hotel properties with approximately 35,500 rooms across 11 countries in Northern Europe. The portfolio's market value is approximately SEK 70bn. The head quarter is in Stockholm, and we are listed on Nasdaq Stockholm.  www.pandox.se