Starwood Capital Group, through a controlled affiliate of Starwood Global Opportunity Fund X (SOF X), has appointed Cycas Hospitality to manage its four extended-stay hotels in Earls Court/Kensington, London Bridge, Bermondsey and Tower Bridge.
The portfolio of 640 studios and one/two-bedroom open plan suites, which SOF X acquired in 2015, is currently undergoing a comprehensive refurbishment that is due to be completed in mid-2017.
“We appointed Cycas Hospitality based on the company’s excellent track record in the extended-stay sector in the U.K. and Europe,” said Nick Chadwick, Vice President at Starwood Capital Group. “We are confident that Cycas Hospitality’s proven management techniques, coupled with a skill set that is relentlessly focused on making customers happy, will produce the best results for our guests and, ultimately, our investors.”
“We are delighted to make these exciting new additions to our portfolio, and proud that Cycas Hospitality has now become the second largest operator of serviced apartment/apart-hotels in London,*” said Eduard Elias, Managing Director at Cycas Hospitality. “These properties are perfectly located in the heart of some of London’s fastest-growing submarkets. Kensington/Earl’s Court provides excellent access to Heathrow Airport and the West End, while London Bridge and Bermondsey has a hip and distinctive vibe all of its own, coupled with easy access to the City of London and Canary Wharf. We will work with our award-winning management teams to add value to these properties and transform them into destinations of choice for both business and leisure travellers.”
Cycas Hospitality works with a wide range of extended-stay brands, delivering results across every level of service standard. The company has ongoing relationships with Marriott, Hyatt and IHG, coupled with ambitious development plans in the U.K. and across Continental Europe. Cycas Hospitality and Starwood Capital will focus initially on brand strategy, with more to be revealed as part of an ambitious launch plan later in the year.
The portfolio reflects Starwood Capital’s longstanding approach of investing in sectors with untapped development potential. “Starwood Capital Group has established itself as a leader in the London extended-stay hotel/serviced apartment market through ownership of this portfolio,” added Mr. Chadwick. “This is one of the most promising and under-supplied real estate sectors in London today. Cycas Hospitality should help ensure that we realise the full potential of these assets.”
*London Top Ten Extended Stay Operators, Savills Research August 2016.