The international hotel investment specialist, M&L Hospitality group, has expanded its portfolio into the UK with the purchase of two hotels in London’s Queen Elizabeth Olympic Park on the expectation of a substantial uplift in specific parts of the sector.
Staybridge Suites and Holiday Inn hotels, Westfield Stratford City
The Singapore-based investment group has taken ownership of two hotels in Westfield Stratford City, the Staybridge Suites and Holiday Inn hotels, increasing its portfolio size to 12 hotels in key gateway cities in Singapore, Australia, Japan, New Zealand and now the UK. This acquisition brings M&L Hospitality’s assets under management to approximately SGD$1.4bn (£711.5m) and is its first investment in the UK.
The hotels are part of London’s Olympic legacy and have already out-performed expectations in average occupancy in the second quarter of this year. M&L Hospitality believes this occupancy will remain constant due to continuing public and private sector investment into the Queen Elizabeth Olympic Park and its surroundings, and the potential upside for the extended-stay model being pioneered by Staybridge Suites in the UK. The average occupancy across M&L’s entire stabilized portfolio stands at above 85% for 2012.
Neil Maxwell, CEO of M&L Hospitality, said: “Entering the London hotel market was vital for us as it is less susceptible to fluctuations in demand and has a flourishing corporate traveller base.
“We look out for top-performing, income-producing hotels from around the world that tap into interesting trends within the sector. With the Olympic legacy alive and kicking in London over the summer and the potential for the extended-stay model to take-off, we believe the UK hotel sector is one to watch.”
The extended-stay model, which provides guests with the convenience of hotel amenities in a serviced apartment setting, has very strong growth potential in the UK, following significant growth in the US where there are over 320,000 extended stay hotel rooms available.
About M&L Hospitality group
Founded in 2009, M&L Hospitality is a family-owned Singapore-based investment group with an international portfolio of best-in-class hotels. The group is a profitable investment platform, building a portfolio of income generating hospitality assets in international gateway cities and Central Business District locations.