Schrager backs out of St Giles hotel purchase

New York hotelier Ian Schrager has pulled out of a deal to buy the St Giles hotel in central London from the Malaysian investment company that owns it.

The 710-bedroom former YMCA building was converted to a three-star hotel five years ago when it was taken over by the IGB Corporation.

The group has put the hotel up for sale, together with an adjacent office building and its 310-bedroom St Giles hotel at London's Heathrow, currently under construction and due to open in February. It is hoping to receive offers in excess of £105m for the package.

Schrager, who owns 12 hotels in the USA, entered into an agreement with UK property company Burford Holdings last year to develop four London buildings into boutique hotels.

So far two properties are under development. Next year Sanderson House in Berners Street is to open as a 204-bedroom hotel and a property in St Martin's Lane as a 161-bedroom hotel.