Far East Consortium (FEC) has sold Dorsett City London Hotel in Aldgate High Street for £115m to Cerberus Capital Management and hospitality management and investment firm Highgate.
In the process FEC has made a disposal gain of £50m, while the firm dubbed the agreement ‘London’s largest hotel deal this year to date’.
The four star central London hotel is 13 storeys high and spans 267 rooms.
Winnie Chiu, president and executive director of FEC, president and executive director of Dorsett Hospitality International Limited said: “We are pleased to have completed the sale in a short period of time.
“We are confident about the recovery of the hotel business in the foreseeable future and remain committed to recycling capital to further expand our footprint worldwide as well as becoming a leader for sustainable travel.
“We are actively exploring various ways of working with our strategic partners to further broaden our hotel portfolio via greenfield, renovation and conversion opportunities globally.
“The sale demonstrates our ability to build valuable brands and we will continue to develop our asset-light Dorsett hotel management platform in selected regions.”
Dorsett Hospitality International Limited is launching an Aparthotel concept, Dao by Dorsett, in London as well as Dorsett‘s first beach-style resort, Dorsett Gold Coast, in Australia.
Both properties are due to open towards the end of 2021.
FEC operates 31 hotels with a total of approximately 8,100 rooms, located in Hong Kong, Mainland China, the United Kingdom, Australia, Singapore, Malaysia, Germany, Austria, and Czech Republic.
FEC has 13 hotels in the development pipeline, including a branded hotel Dao by Dorsett West London, the Ritz-Carlton hotel in Melbourne and Dorsett Gold Coast in Australia as of 31 March 2021.
Once all the hotels in its pipeline become operational, FEC will own 44 hotels, operating a total of approximately 11,350 rooms.