Starwood Capital Expands Manchester Footprint
The U.S. investment company expands its U.K. portfolio by grabbing its third hotel in the area, Holiday Inn Manchester City Centre.
By Corina Stef
Starwood Capital Group acquired the 298-key Holiday Inn Manchester City Centre via one of their controlled affiliates, Starwood Global Opportunity Fund X (SOF X). JLL Hotels and Hospitality Group’s Executive Vice President Will Duffey closed the transaction on behalf of the seller and developer, Dominvs Group, a family-owned business. Kew Green Hotels will manage the asset.
The 3-star hotel, located at 25 Aytoun St., opened in April 2016 and it features 277 standard guestrooms and 21 suites. Guest amenities include an open lobby and gym, a restaurant, bars, 12 cutting-edge meeting rooms with plenty of conference and events space, and free Wi-Fi. The building was designed by award-winning London architecture firm Dexter Moran and incorporates state-of-the-art architectural elements.
The owners singled out Kew Green Hotels to take over management services under a franchise agreement. “The Holiday Inn Manchester City Centre has already generated strong cash flow during its first year, and as one of the premier U.K. hotel operators, and the largest Holiday Inn franchisee in Europe, Kew Green Hotels will bring what we believe is world-class operational expertise to this asset,” Starwood Capital Group Vice President Jon Asumedi said in a prepared statement. The property will continue to be branded as a Holiday Inn and will benefit from InterContinental Hotels Group’s global distribution system.
The hotel offers immediate access to the city’s core, landmarks, galleries, markets, restaurants and clubs. It is also conveniently located adjacent to Piccadilly Station, Manchester’s main intercity rail and tram terminal.
The building is not the first property Starwood Capital Group tapped in Manchester. In 2013, the company purchased The Principal Manchester, formerly known as The Palace Hotel. One year later, Starwood added The Royal Exchange to their investment portfolio. The company plans to extend its accommodation business in the U.K.
Image courtesy of Dominvs Group
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