JER Partners has sold its 50% stake in the Andaz Liverpool Street London, formerly the Great Eastern Hotel, to joint venture partner Global Hyatt Corporation.
JER and Hyatt bought the 267 room luxury hotel at Liverpool Street station in London in March 2006 through a 50:50 joint venture from Conran and Blackstone Group.
The JV undertook a £4.8m investment program, including a soft refurbishment of approximately half the hotel’s rooms and the hotel lobby.
It is thought that the sale of JER’s stake, which is the first sale from the JER Europe III fund, values the hotel in excess of £185m.
Malcolm Le May, president at JER Europe, said: ‘It (the investment) has particularly benefited from the cyclical revenue per available room growth in the London hotel market and Hyatt’s excellent revenue management of the hotel.’
JER, the private equity arm of the US-based property fund manager JE Robert, is concentrating on the budget hotel sector. In October it bought Morethanhotels, which owns and manages a portfolio of 11 Express and Holiday Inn hotels, for around £115m.