Host Hotels Acquires London’s Le Meridien Piccadilly

The US-based Host Hotels & Resorts has been busy lately raising its forecast due to a rise in hotel bookings, as well as buying more property. The company has announced their latest high-profile deal this month for the purchase of the Le Meridien Piccadilly in London from Starman Hotels. They are set to pay US$96.7 million (£64 million), which includes a US$50 million mortgage, for the 266-room hotel located in the Mayfair district.

Starman Hotels, which was a joint venture between Lehman Brothers and Starwood Capital, property director Felicity Black-Roberts said that they are delighted with the sale of Le Meridien Piccadilly, as it follows their divestment strategy. They chose Host Hotels as their preferred buyer because of their track record, she added, and they have secured a great addition to their portfolio.

Last quarter, Host Hotels returned to profitability with a US$13 million net income against 5 straight quarters of losses. Quarterly revenue increased to US$1.1 billion and RevPAR rose 8.1%. Citing an improving economy, they raised their forecast for full-year funds from operations and RevPAR.

Earlier this week, the hospitality business also announced that a deal was reached for them to buy the 424-room Westin Chicago River North hotel for US$165 million. They also said that they have reached a deal for their Asia Pacific Hospitality Venture to develop 7 new India properties. Also this month, the company said that they would lead a group of investors in acquiring W New York Union Square hotel, while other high-profile properties have been purchased as well.