Union Hanover has revealed plans to develop and operate a high-end boutique hotel at Lend Lease and London & Continental Railways’ The International Quarter, Stratford City, following the acquisition of Starboard Hotels’ share in the project and completion of the land purchase.
The 220-bedroom The Penny Brook with a roof top bar and restaurant and on the top two floors, and also a pop-up street food market offering is designed to bring a taste of New York’s trendy Meat Packing district to E20.
Union Hanover will operate the £70m hotel under its NOHO hospitality brand. The hotel will also boast 15,000 sq ft of conference facilities. Restaurant Property is advising Union Hanover.
New York-inspired boutique hotel
Union Hanover’s decision essentially flips the company’s original plans around and fulfils managing director Eric Jafari’s long held dream to develop a destination boutique hotel. Jafari said:
“This a hugely exciting opportunity for us. We believe that we can create a New York-inspired boutique hotel that will inject a real buzz into Stratford which has unrivalled access to the City, West End and Canary Wharf. We are in talks with a number of high-end restaurant operators and have a number of creative initiatives which will ensure this will offer a unique hospitality experience.”
First conceived with Starboard Hotels
The first plans conceived in partnership with Starboard Hotels, that initiated the original deal with Lend Lease, were to build a 275,000 sq ft hotel of up to 500 bedrooms, comprising Union Hanover’s Urban Villa extended stay hotel and an internationally branded hotel.
Union Hanover has now bought out Starboard from the project. Paul Callingham, managing director, Starboard Hotels, says: “Starboard Hotels is currently looking at opportunities in key cities throughout the UK in which we can expand our portfolio of private and franchised hotels and luxury hostels. This deal, which delivers a strong return on our original investment without any development risk, has allowed us to make funds available for further property acquisitions. This arrangement works well for both Starboard and Union Hanover, we enjoy a good working relationship and we may work together on other projects in the future.”
Last week it was announced that Union Hanover and its funding partner EquityBridge Asset Management had signed a development partnership with Aparthotels Adagio which will operate the 137 apartment Adagio London Stratford on Celebration Avenue, and a 217 apartment hotel at Black Lion House on Whitechapel Road at the edge of the City.
Warren Malschinger Managing Director of EquityBridge Asset Management, said: “The deal with Adagio has allowed us to provide Union Hanover greater flexibility which will see them retain, own and operate the £70m PennyBrook Hotel under their NOHO hospitality Brand”.
Union Hanover completed the deal to acquire the site form Lend Lease and London & Continental Railways in early June.