Ares and EQ dispose of Sheffield Novotel

A joint venture between Starboard Hotels and LaSalle Investment Management has acquired the property in a deal that includes six other venues across the country.

Also snapped up as part of the deal were the ibis Birmingham New Street and Novotel Birmingham Centre, Southampton Novotel, and ibis properties in Barking, Southampton, and Luton.

EQ Group said the deal marked its “final exit” from the 18-hotel portfolio it acquired with Ares in 2024, for a headline purchase price of £400m.

Starboard now manages a 3,000-room portfolio of 28 hotels, including 15 Accor franchise properties across the ibis and Novotel brands.

“This is a first Private Equity Joint Venture transaction for us and we are very excited to be working in partnership with LaSalle to bring this established portfolio into our hotel family,” said Frazer Callingham, managing director of Starboard Hotels.

“We expect the portfolio to bring operational efficiencies across our estate, and it is exciting to be a part of both new cities and brands with great potential to grow and improve.”

The seven hotels included in the deal, comprising 913 bedrooms, are: ibis Birmingham New Street, Novotel Birmingham Centre, Novotel Sheffield Centre, ibis Luton Airport, ibis Southampton Centre, Novotel Southampton and ibis London Barking.

The new acquisitions will be managed by Starboard under existing Accor franchise agreements.

Hussein Sunderji, managing director and partner at EQ Group, added: “EQ Hotels are delighted to complete the sale of the portfolio to Starboard and LaSalle, and look forward to seeing these well-located regional hotels’ continued growth under their ownership.

“This sale marks our final exit from the 18-asset UK portfolio acquired with Ares in 2024, completing a 27-month deal cycle that delivered significant value creation through both nimble deal execution and best-in-class operational management. ”

Ares and EQ were represented by JLL and Christie & Co, who said the transaction highlighted the “continued demand for quality hotel assets” in established locations.

Kerr Young, head of UK national hotels transactions, capital markets at JLL added: “Completing this transaction highlights the underlying liquidity in the UK hospitality market and signals a buoyant outlook for regional portfolio activity moving forward. We wish the new owners every success as they take these assets into their next phase of growth.”