Crosstree To Sell £185M London Standard Hotel As Hyatt Buys Brand
Private equity fund manager Crosstree Real Estate is close to completing an agreement to sell The Standard hotel in London for £185M, one of the largest deals for an individual hotel in the UK capital this year.
U.S. hotel investment specialist Trinity Investments and Swiss private equity firm Partners Group agreed to buy the 266-bed luxury hotel in the King’s Cross district, Green Street News reported.
The agreement comes as Hyatt Hotels completes a deal to buy the Standard International brand, which operates the hotel, from the company’s founder and executive chairman, Amar Lalvan.
Crosstree bought the former annexe of Camden Town Hall from Camden Council in 2014 for £40M, and McLaren won a £20M construction contract to refurbish the 1960s modernist building and add more floors, converting it from offices to a luxury hotel with restaurants and a rooftop bar.
The company, led by Nick Lyle and Sean Arnold, saw the opportunity to build a hip hotel next to the King’s Cross Central development, where tech firms like Google and Facebook and music company Universal have offices.
Partners bought a minority stake in Honolulu-based Trinity in April, and it is investing $500M in the hotel market in a joint venture with the company, according to Green Street News.
Hyatt will pay $150M for Standard International, which owns The Standard and Bunkhouse brands and operates 21 hotels with 2,000 rooms globally. The brand is set to open 30 more hotels, adding $185M to the price tag.
Hyatt is among the speakers at Bisnow’s UK Hotel Outlook event on 22 October, joining big names in the industry, including Blackstone, Starwood and London & Regional. Sign up here.
