Starboard Hotels, the independent British hotel operator, has completed the acquisition of seven Accor hotels from Ares Real Estate Funds and EQ Group, in joint venture with LaSalle Investment Management. The value of the transaction was not disclosed. Ares and EQ Group were advised by JLL and Christie & Co.
The deal takes the Accor UK portfolio operated by Starboard to 15 properties, out of a total of 28 hotels owned and operated by the group in the UK. Founded in 2006, Starboard marks its twentieth year of operation this year and surpasses the 3,000-room threshold under management for the first time.
Seven hotels across strategic regional markets
The divested portfolio comprises 913 rooms spread across the ibis Birmingham New Street, the Novotel Birmingham Centre, the Novotel Sheffield Centre, the ibis Luton Airport, the ibis Southampton Centre, the Novotel Southampton and the ibis London Barking. These properties fall under the Novotel brand, positioned in the four-star midscale segment, and the ibis brand, aimed at economy-segment guests.
In Birmingham, the UK’s second-largest city, the ibis New Street Station is located within the Arcadian Centre, at the heart of the Chinese Quarter, while the Novotel Birmingham Centre sits on Broad Street, in the Brindleyplace district. These two acquisitions bring to four the number of hotels operated by Starboard in the city.
The Novotel Sheffield Centre, a five-minute walk from the station, becomes the group’s second hotel in the city, close to the Crucible Theatre and Sheffield Arena. In Southampton, the ibis Southampton Centre and Novotel Southampton mark Starboard’s first presence in one of the country’s busiest ports, a short walk from the central station and the cruise terminals.
The ibis Luton Airport, a ten-minute walk from the airport terminal, brings to three the number of hotels the group operates serving major UK airports. The ibis London Barking, meanwhile, becomes Starboard’s third London hotel and benefits from direct access to the Canary Wharf business district as well as the Westfield Stratford shopping centre.
A first private equity alliance for Starboard
Frazer Callingham, Managing Director of Starboard Hotels, noted that this was the group’s first transaction carried out in joint venture with a private equity fund. He indicated that the portfolio was expected to generate operational synergies across the existing estate, while also opening access to new cities and new brands.
Leif Skogland, Vice President Value-Add Investments Europe at LaSalle Investment Management, confirmed the potential identified in this portfolio and pointed to the prospect of extending this partnership to other opportunities in the UK market. This transaction forms part of a wider sequence of transactional activity observed in the UK hotel market, in which LaSalle has been involved on several occasions in recent months, on both the buy and sell side.
Ares and EQ Group complete their exit
For EQ Group, this sale marks the complete exit from a portfolio of 18 assets acquired with Ares in 2024. Hussein Sunderji, Managing Director & Partner at EQ Group, pointed to a 27-month transaction cycle that, in his view, delivered significant value creation through rapid execution and what he described as first-rate operational management.
On the advisory side, Kerr Young, Head of National Hotels Transactions at JLL, said the transaction illustrated the continued liquidity of the UK hotel market and a favourable backdrop for further activity on regional portfolios. Jeremy Jones, Head of Hotel Agency at Christie & Co, highlighted the strategic location of several of the assets, notably close to Luton Airport and the Barking district of London.
At a glance by The Hospitality Tribune
Starboard and LaSalle acquire seven Accor hotels in the UK
Portfolio: 7 hotels, 913 rooms, across Birmingham, Sheffield, Southampton, Luton and London
Sellers: Ares Real Estate Funds and EQ Group, advised by JLL and Christie & Co
Buyer structure: Starboard Hotels and LaSalle Investment Management joint venture
Impact: Starboard’s UK portfolio grows to 28 hotels and over 3,000 rooms
Brands involved: ibis and Novotel, operated under existing Accor franchise agreements
Context: first private equity joint venture transaction for Starboard, marking its 20th anniversary
