Key Takeaways
- • Starboard Hotels and LaSalle Investment Management acquired a seven-hotel UK portfolio totaling 913 rooms from Ares Real Estate Funds and EQ Group for an undisclosed sum.
- • The transaction marks Starboard's first private equity joint venture deal and gives LaSalle a platform for further UK hotel investment alongside Starboard.
- • The acquisition lifts Starboard's UK portfolio to 28 hotels and more than 3,000 rooms, including 15 Accor-branded properties, and adds its first Southampton presence.
- • The deal completes Ares and EQ's exit from an 18-asset UK hotel portfolio they acquired together in 2024.
Summary
Starboard Hotels and LaSalle Investment Management have acquired a seven-hotel UK portfolio from Ares Real Estate Funds and EQ Group for an undisclosed sum, according to Hospitality Investor. The portfolio comprises 913 rooms across Birmingham, Sheffield, Luton, Southampton and London, and marks Starboard's first private equity joint venture transaction.
The seven properties are ibis Birmingham New Street, Novotel Birmingham Centre, Novotel Sheffield Centre, ibis Luton Airport, ibis Southampton Centre, Novotel Southampton and ibis London Barking. The hotels will continue to operate under existing Accor franchise agreements, with Starboard managing the properties.
Frazer Callingham, managing director of Starboard Hotels, said the portfolio is expected to bring operational efficiencies across the company's estate and described the cities and brands as offering strong growth potential. Leif Skogland, vice president of value-add investments, Europe at LaSalle Investment Management, said the firm sees significant potential in the portfolio and believes further UK opportunities will arise for the joint venture to expand.
Once completed, the acquisition takes Starboard's UK portfolio to 28 hotels and more than 3,000 rooms, including 15 properties operating under Accor brands. It gives Starboard its first presence in Southampton, increases its exposure to airport markets through ibis Luton Airport, and brings its count of hotels serving major UK airports to three. The Birmingham acquisitions raise its presence in the city to four hotels, Novotel Sheffield Centre is its second Sheffield property, and ibis London Barking takes its London portfolio to three.
The deal completes Ares and EQ's exit from an 18-asset UK hotel portfolio they acquired alongside Ares in 2024. JLL and Christie & Co advised Ares and EQ on the sale.
The seven properties are ibis Birmingham New Street, Novotel Birmingham Centre, Novotel Sheffield Centre, ibis Luton Airport, ibis Southampton Centre, Novotel Southampton and ibis London Barking. The hotels will continue to operate under existing Accor franchise agreements, with Starboard managing the properties.
Frazer Callingham, managing director of Starboard Hotels, said the portfolio is expected to bring operational efficiencies across the company's estate and described the cities and brands as offering strong growth potential. Leif Skogland, vice president of value-add investments, Europe at LaSalle Investment Management, said the firm sees significant potential in the portfolio and believes further UK opportunities will arise for the joint venture to expand.
Once completed, the acquisition takes Starboard's UK portfolio to 28 hotels and more than 3,000 rooms, including 15 properties operating under Accor brands. It gives Starboard its first presence in Southampton, increases its exposure to airport markets through ibis Luton Airport, and brings its count of hotels serving major UK airports to three. The Birmingham acquisitions raise its presence in the city to four hotels, Novotel Sheffield Centre is its second Sheffield property, and ibis London Barking takes its London portfolio to three.
The deal completes Ares and EQ's exit from an 18-asset UK hotel portfolio they acquired alongside Ares in 2024. JLL and Christie & Co advised Ares and EQ on the sale.
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