Irish investment company Claret Capital has bought a majority stake in a 5-star hotel in Washington DC in a purchase and leaseback deal.

The company said it had bought a 90% stake of the St Regis Hotel, which is two blocks away from the White House, from a joint venture between New York private equity firm Brickman and a company called New Valley. The purchase price was not disclosed.

Claret’s purchase follows an $80m (£40m) refurbishment and two-year investment programme at the hotel which will reopen later this year. It is operated by Starwood Hotels & Resorts which has around 870 properties under management in more than 100 countries.

Dómhnal Slattery, managing partner at Claret Capital, said: ‘This is a unique investment opportunity - assets of this quality and reputation have a scarcity value as they rarely come to market . This transaction provides Claret Capital with geographic diversity and exposure to, what we consider to be, a highly attractive asset class. It is an opportune time to invest in the US market where we see significant value.’

Jones Lang LaSalle advised Claret Capital.