Starwood Capital sells Ace Hotel in Shoreditch for £150 million

UK: The Ace Hotel in London’s Shoreditch has been sold for £150 million, or £580,000 per key.

UK: The Ace Hotel in London’s Shoreditch has been sold for £150 million, or £580,000 per key.

The hotel which once stood on the site of the original Shoreditch Empire music hall was acquired by Starwood Capital Group in 2012, converted to an Ace Hotelfollowing an extensive refurbishment and was subsequently honoured for “Best Renovation” at the 2014 European Hotel Design Awards.

Ace Hotel Group will continue to manage the hotel on behalf of the new owner Limulus Ltd, which was advised by The Deerbrook Group.

The hotel comprises 258 bedrooms, 10 meeting spaces, a lobby bar, a nightclub and the Hoi Polloi restaurant. 

The sale was facilitated by JLL’s Hotels & Hospitality Group, whose vice president Adam Wilson said: “This transaction sets a new benchmark for hotel pricing in the local area and represents a narrowing of the gap between East and West London pricing. This sales process attracted over £1 billion of equity from all over the globe and is indicative of the insatiable appetite for London hotel real estate.”

Nick Chadwick, vice president of Starwood Capital Group, said: “We are thrilled that our ambitious vision for this hotel has come to fruition, and that we have been able to considerably enhance the value of this asset by positioning it to take advantage of the tremendous growth prospects of the Shoreditch market. Ace Hotel has proven to be the perfect brand for this property, and our successful partnership on Ace’s first project outside the United States underscores Starwood Capital’s commitment to working with innovative hotel management companies of all sizes to the ultimate benefit of our investors.”

“We were early in recognising the potential of Shoreditch to emerge as one of London’s hottest neighbourhoods, as the home of so much of the city’s creative output in the areas of technology, media and the arts,” added Mr. Chadwick. “With the Ace Hotel London Shoreditch, we have created a 24/7 gathering place that reflects the area’s palpable energy, and which should continue to enhance the community by inspiring residents and visitors alike,” added Chadwick.

Editor’s Comment

London’s hottest hotel market just got hotter. The sale of the Ace Hotel to Limulus has smashed records for price per key in London’s hipster central neighbourhood. International operators are lining up to open properties in an area which has seen a meteoric rise from down-at-heel to ultra-fashionable. Gansevoort, Nobu, CitizenM and M by Montcalm are all set to open in the next 18 months, making this corner of east London one of the most competitive hotel markets anywhere in the world.

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