Collection of seven hotel sites acquired in PE-backed joint venture

A collection of seven hotel sites has been acquired by operator Starboard Hotels in a private equity-backed deal. The firm has acquired the venues, including hotels from Ares Real Estate Funds and EQ Group, for an undisclosed sum in a joint venture with LaSalle Investment Management.

The seven hotels, which comprise 913 bedrooms, are ibis Birmingham New Street, Novotel Birmingham Centre, Novotel Sheffield Centre, ibis Luton Airport, ibis Southampton Centre, Novotel Southampton and ibis London Barking.

ibis London Barking, which represents Starboard’s third hotel in London, provides access to Canary Wharf’s business district, as well as Westfield Stratford, the UK’s largest shopping centre.

ibis Luton Airport, which is located ten minutes away from the airport terminal and a short distance from Luton Airport Parkway, means the company now has three hotels serving major UK airports.

The acquisition of ibis Birmingham New Street Station and Novotel Birmingham Centre take Starboard’s total number of Birmingham hotels to four, while the acquisition of Novotel Sheffield Centre means the company now owns and operates two hotels in the city.

ibis Southampton Centre and Novotel Southampton are Starboard's first hotels in Southampton, providing the company with an entrance into one of the UK’s busiest port cities.

The deal brings Starboard Hotels’ portfolio of UK hotels to 28 and its total number of rooms to more than 3,000, as well as taking the total number of Accor hotels it manages to 15. Accor, a global hotel operator and franchisor with over 250 UK and Ireland hotels, owns and operates the prominent midscale market brand Novotel.

Frazer Callingham, Managing Director of Starboard Hotels, said that the acquisition is expected to bring operational efficiencies across the company’s estate, while adding new cities and brands with strong growth potential into the group.

Leif Skogland, vice president, Value-Add Investments, Europe at LaSalle Investment Management, said: "We are delighted to be partnering with Starboard on this exciting opportunity; we see great potential in this portfolio and look forward to realizing the business plan. We believe further opportunities will arise across the UK for us to expand our joint venture with Starboard."

Hussein Sunderji, Managing Director and partner at EQ Group, commented: "This sale marks our final exit from the 18-asset UK portfolio acquired with Ares in 2024, completing a 27-month deal cycle that delivered significant value creation through both nimble deal execution and best-in-class operational management."

Ares and EQ were represented during the transaction by JLL and Christie & Co. Kerr Young, Head of UK National Hotels Transactions, Capital Markets at JLL, said the deal “highlights the underlying liquidity in the UK hospitality market and signals a buoyant outlook for regional portfolio activity moving forward.”

Jeremy Jones, Head of Brokerage - Hotels at Christie & Co, said: "The transaction highlights the continued demand for quality hotel assets in established UK locations."

Read more on M&A trends in the UK's wider travel and tourism industry

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