By Andy Sambidge
Capital Hill Hotels completes $300m acquisition of two luxury properties in English city
Morgans Hotel Group Co, the operator and 50 percent owner of two luxury hotels in London, has completed the sale of the properties to a Middle East investor.
Morgans, part of a joint venture which owned five-star hotels Sanderson and St Martins Lane, said in a statement that the hotels had been sold to Capital Hill Hotels Limited, a Middle East investor with other global hotel holdings.
The sale price for the two hotels was about $300m, Morgans said in a statement without giving further information about the buyer.
Morgans' portion of the net proceeds, after the repayment of debt and closing costs, would be $73m, it added.
Michael Gross, CEO of Morgans said: "We are pleased to complete this sale and we look forward to a long and beneficial partnership with Capital Hill Hotels as we continue to manage Sanderson and St Martins Lane."
Morgans will continue to operate the Sanderson and St Martins Lane hotels under long-term management agreements.
The terms of the management agreements, including extension options, have been extended to 2041 from 2027.
The news of the sale comes weeks after Qatar-based investment group Al Faisal Holding paid close to £200m ($313m) to acquire the W London Hotel in Leicester Square.
The deal marked the latest in a series of investments in British assets by Qatari buyers.
The Gulf’s state’s wealth fund counts luxury London department store Harrods and stakes in Barclays, retailer J Sainsbury’s and the London Stock Exchange among its investments.